WTI Price Forecast: Seems vulnerable below $80.00 as break below 50% Fibo. comes into play
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – remains under some selling pressure for the third straight day and drops to a nearly two-week low during the Asian session on Wednesday.
West Texas Intermediate (WTI) crude oil prices are experiencing a downturn, falling to near two-week lows as traders react to developments surrounding the Middle East crisis. Iran has reportedly restarted talks with Oman to manage commercial shipping traffic through the Strait of Hormuz, while the US has offered Iran sanctions relief and an end to the naval blockade in exchange for reopening the strategic waterway and halting attacks by regional proxies.
This has sparked hopes for a diplomatic resolution to the US-Iran conflict, leading traders to price out the geopolitical risk premium and weigh on crude oil prices. From a technical standpoint, WTI has broken below the 100-period Exponential Moving Average on the 4-hour chart and now trades below the 50% Fibonacci retracement level of its recent recovery from the monthly swing low, reinforcing the negative outlook.
Momentum indicators also suggest that any bounce would need to overcome nearby resistance to shift the tone.
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