6 Mar 2015
WTI Crude drops below USD 50/barrel
FXStreet (Mumbai) - WTI Crude futures dropped after a strong monthly jobs report in the US strengthened the US dollar. Prices hit a low of USD 49.84, down more than 1% for the day.
WTI Crude: falls below a Fib level
Prices dropped below 38.2% retracement level (43.56-54.20) located at USD 50.14. Crude prices had gained on geopolitical tensions in the middle east. Markets were worried that these tensions could create supply shortage, despite the weekly inventory data in the US showed crude stockpiles at record highs. However, the prices fell from USD 51.04 after the data in the US showed the economy added 295 jobs, beating the expectations of 235K. The strong data pushed the USD index higher to 97.51 levels; up 1.18% for the day.
WTI Crude Technical Levels
The immediate support is seen at 49.43, under which losses could be extended to 48.70 levels. On the other hand , prices could re-test 51.04 levels if the immediate resistance at 50.14 is taken out.
WTI Crude: falls below a Fib level
Prices dropped below 38.2% retracement level (43.56-54.20) located at USD 50.14. Crude prices had gained on geopolitical tensions in the middle east. Markets were worried that these tensions could create supply shortage, despite the weekly inventory data in the US showed crude stockpiles at record highs. However, the prices fell from USD 51.04 after the data in the US showed the economy added 295 jobs, beating the expectations of 235K. The strong data pushed the USD index higher to 97.51 levels; up 1.18% for the day.
WTI Crude Technical Levels
The immediate support is seen at 49.43, under which losses could be extended to 48.70 levels. On the other hand , prices could re-test 51.04 levels if the immediate resistance at 50.14 is taken out.