WTI Crude popped slightly higher during Tuesday’s trading session on the back of a pipeline outage in the North Sea which stimulated fears of supply disruptions.
While oil markets could remain supported in the short-term amid supply disruptions and ongoing OPEC-led production cuts, rising production from U.S Shale has the ability to limit upside gains. Taking a look at the technical picture, WTI has found itself in a wide range on the daily charts as the battle of bulls and bears rages on. Technical traders will continue to closely observe how prices behave above the $56.00 support and $58.50 resistance. An intraday breakdown below $57.00 could open a path towards $56.60 and $56.00, respectively. Alternatively, a move back above $57.80 should provoke bulls with enough motivation to attack the upper limit of the range at $58.50.
Sterling hovers above 1.3300
Sterling staged an impressive rebound from the 1.3300 level during Monday’s trading session. This has nothing to do with a change of sentiment towards the Pound, but rather Dollar weakness. With Brexit uncertainty and political risk still weighing heavily on Sterling, the GBPUSD’s upside could be limited. From a technical standpoint, the GBPUSD is at risk of depreciating further once bears conquer the 1.3300 support level. Sustained weakness below this level may encourage a steeper decline towards 1.3230 and 1.3150, respectively. A situation where bulls are able to push prices back above 1.3440 should inspire a further incline towards 1.3520.
Currency spotlight – EURUSD
The EURUSD extended gains on Tuesday amid a weakening US Dollar. With the economic calendar for the Eurozone area fairly light again today, a softening Greenback is likely to continue pushing the EURUSD higher in the short term. Focusing on the technical picture, the 1.1850 level remains a significant pivotal point which could play a role in where the currency pair concludes this week. A failure of prices to break above 1.1850 has the ability to trigger a decline back towards 1.1730 and 1.1680, respectively. A scenario where the EURUSD is able to break above 1.1850 could open a path back towards 1.1920.
Commodity spotlight – Silver
Silver edged slightly higher on Tuesday, with prices trading around $16.125 as of writing. Although a vulnerable Dollar offered the metal some support in recent weeks, the trajectory still points to further downside. The metal remains technically bearish on the daily charts as there have been consistently lower lows and lower highs. Prices are trading below the daily 20 SMA while the MACD has also crossed to the downside. An intraday breakdown below $16.00 may open a path lower towards $15.60 and $15.42 respectively. Alternatively, bears could exploit the $16.30 resistance regions to drive the precious metal back to $16.00 and lower.