WTI flirting with highs near $47.40

By FXStreet FXStreet (Edinburgh) – Crude oil prices are recovering the smile on Tuesday, advancing to the upper bound of the daily range near $47.40 per barrel.

WTI better bid despite USD gains

The barrel of West Texas Intermediate is trading on a firmer footing amidst market chatter of a ‘technical rebound’, while concerns over the supply glut remain unabated and capping the occasional bullish attempts.

Today’s upbeat tone in the WTI is running opposite to the strong buying interest around the US dollar, as speculations of a Fed’s lift-off in December continue to build up. Currently, the probability of a rate hike next month remains close to 50%, when it was below 30% prior to last week’s FOMC gathering.

WTI levels to watch

At the moment the barrel of West Texas Intermediate is gaining 2.60% at $47.34 with the next resistance at $47.80 (76.4% Fibo of $37.75-$50.9) ahead of $49.33 (high Aug.31) and then $50.79 (200-day sma). On the other hand, a break below $41.78 (low Aug.28) would expose $40.85 (23.6% Fibo of $37.75-$50.92) and finally $37.75 (2015 low Aug.24).
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Source:: FX Street