18 September 2020

WTI bulls ignore the return of Gulf oil producers around mid-$41.00s

WTI seesaws near the early-month highs while taking rounds to $41.45/50 ahead of Friday’s European session. In doing so, the energy benchmark pays a little heed to Reuters’ piece conveying restoration of oil rigs in the Gulf of Mexico. The reason could be traced from the dull performance of the US dollar and mixed headlines from Saudi Arabia and the OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and its allies like Russia.

“US offshore drillers and exporters began a clearup on Thursday after Hurricane Sally weakened to a depression and started rebooting idle Gulf of Mexico rigs after closing the down for five days” said Reuters during the early Friday. The same could add into the 180 figures of weekly Baker Hughes US Oil Rig Count, up for publishing around 17:00 GMT.

Technical analysis

Considering the strength of the 200-bar SMA and signals of a pullback marked by the RSI, sellers remain hopeful. The same push them to look for entry if oil prices drop below the 61.8% Fibonacci retracement level of August 26 to September 08 downside, near $41.00. Meanwhile, a sustained clearance of $41.42 figures, comprising 200-bar SMA, will aim for September 04 top of $42.07 before the August 27 bottom near $42.50 challenge further rise.

https://www.fxstreet.com/news/wti-bulls-ignore-the-return-of-gulf-oil-producers-around-mid-4100s-202009180600

EUR/GBP to target the 0.9308 2017 high – Commerzbank

EUR/GBP is seeing a period of stabilisation ahead of the 55-day ma at 0.9038 and trades at 0.9140, posting mild gains of 0.1% on the day. Karen Jones, Team Head FICC Technical Analysis Research at Commerzank, expects the pair to push higher again towards the 2017 high at 0.9308.

Key quotes

“EUR/GBP’s correction lower went a little further than we had hoped but remains within the realms of a correction only. We view this as the market pausing ahead of further gains to the 0.9308 2017 high and 0.9323, the 78.6% Fibonacci retracement. This is formidable resistance and it is expected to hold the initial test.”

“We suspect that the market is consolidating ahead of another leg higher. Near-term dips will find initial support at 0.9072, the mid-August high and are likely to remain contained by the 55-day ma at 0.9038.”

https://www.fxstreet.com/news/eur-gbp-to-target-the-09308-2017-high-commerzbank-202009180628

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