WTI Crude oil drops as US Data falls short, pressing yields lower. Crude oil fell today after US statistics showed that the economy is slowing

WTI crude oil on US data and lower yields

After US statistics showed that the economy may be declining, the price of crude oil fell today. Elevating the possibility of an impending recession in the biggest economy in the world.

The US dollar gained yesterday into the New York close and has gained so far today. The only currency to win footing against the dollar is the Japanese Yen. On the basis of the weak figures, markets seem to have searched for safety in supposedly secure haven currencies.

Through the Asian session, Treasury rates remained marginally lower while 10-year US real yields reached a seven-month bottom. In contrast to the 1.72% seen last month, it reached 1.02% yesterday. At the same time, gold reached a 12-month top of USD 2,032, but it has since declined.

In an interview with Bloomberg, Cleveland Federal Reserve President Loretta Mester said, “We’re rapidly likely to need to move a little bit upwards,” – in allusion to the Fed’s goal rate.

WTI crude oil will be looking at more economic data

Since Tuesday’s 10-week peak, crude has dropped even more as fears of a US recession dampen chances for global economic expansion. As of the moment. Brent is trading at about US$ 84.50 bbl while the WTI futures instrument is trading close to US$ 80 bbl.

Canada and the US will receive some employment statistics later today. Despite the fact that many markets will be closed on Friday. The US non-farm payrolls may prove to be an important data point in light of yesterday’s movements.

The technical analysis of WTI crude oil

WTI oil broke through the previous highs of 80.62 and 80.94, but it was unable to maintain that position. This might suggest that the motion was an attempted escape. From an analytical standpoint, the market gapped higher on Monday, and sometimes markets try to close gaps. This fundamental event might take place if the price breaks below Monday’s bottom of 79.00.

Prior to the breakpoints in the 72.25 – 72.45 region. Support may be found at the 23.6% and 38.2% Fibonacci Retracement levels at 77.70 and 75.25, respectively. The region between 82.50 and 83.30, which contains several breakpoints and previous summits, may act as a barrier region on the topside.

Technical Summary