Oil reaches YTD highs and settles above $42.00/bbl

By FXStreet Crude oil prices soared to fresh 2016 highs, boosted by news indicating that Russia and Saudi Arabia have agreed to freeze output ahead of the Doha meeting of oil producers this weekend, adding that the final decision will not depend on Iran.

US West Texas Intermediate futures settled at $42.17 a barrel, up 4.5%, a couple of cents below the daily high of $42.23.

WTI technical perspective

“The daily chart shows that the commodity rallied further beyond its 200 DMA, and holds at levels last seen last November. The technical indicators in the mentioned time frame have rallied further above their mid-lines, and maintain strong bullish slopes, supporting some further gains towards the 45.00 region,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the Momentum indicator has retreated partially from overbought territory, but that the RSI indicator continues heading higher around 79, this last supporting a continued advance. Further supporting the upside in this last time frame, is a strongly bullish 20 SMA that has crossed above the 100 and 200 SMAs well below the current level.”

Support levels: 41.80 41.10 40.50. Resistance levels: 42.30 42.90 43.60.
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Source:: FX Street