Crude WTI Pricing surge after Powell’s testimony to congress. Powell maintained his position and didn’t make any hardline shocks.
Crude WTI Key Considerations
WTI increased to $72.70, the highest point as of June 8.
Powell maintained his position from last Wednesday’s press conference. And did not make any surprising hawkish statements.
The increase in crude (WTI) was driven by an upbeat market environment with soaring equities.
Crude WTI soared to a two-week top
In the wake of Jerome Powell’s speech before the US Congress. The crude (WTI) climbed towards its highest point in the past two weeks before levelling out on $72.40. Though suggesting more increases, he pointed at the fact that the economy and job market are still solid. Which supported an optimistic market climate and a rebound in US equities. Additionally, the USD saw declines of in excess of 0.40% and dropped to 102.05 as assessed based on the DXY index.
After Powell’s assertions, stocks rise
Jerome Powell, the chairman of the US (Fed), said in the presence of the US Congress – That “nearly most FOMC members view that to be proper to increase the interest rate slightly more by end of the year”. He managed to instill hope in markets by noting that he expects wage growth to moderate. While stressing the pick will continue to be based on the statistics. Given that oil prices often have an adverse relationship with interest rates. Investors consider the Fed to be nearer the conclusion of its hiking phase.
WTI Technical Perspective
According to the daily graph, the near-term outlook for WTI is flat to positive. The price is staying under the 100 & 200-day (SMA) Amid indications recovering momentum and shifting into higher territory.
However, the next resistance stands at $73.00, backed by a 100-day SMA on $74.45 then the emotional barrier of $75.00. On the contrary, the $72.00 region, its 20-day SMA of $70.77, with the $70.00 region are all considered as supports.
