Oil retraces from 7-month high ahead of US CPI and inventories data
By FXStreet WTI crude oil faded its bullish spike to a fresh 2016 high level of $48.40 and dropped back below $48.00 mark as bulls seem to take some profits off the table ahead of the key US CPI release.
Earlier on Tuesday, bulls were in full control, lifting the commodity above $48.00/barrel mark for the first time since Nov. 2015. Of late oil prices had gained momentum on continued worries over supply disruptions and bullish forecasts from leading investment banks. However, after yesterday’s strong rally coupled with the momentum gains earlier on Tuesday, the commodity seems to witness some profit taking move ahead of the key inventory data later on Tuesday out of the American Petroleum Institute (API). The API data leads the official data from the US Energy Information Administration (EIA) data on Wednesday.
Moreover, investors will also scrutinize the US inflation number and data from the US housing sector that could have an impact on the US Dollar. Renewed signs of weakness in the greenback would add further support for the black gold. Even from technical perspective, the commodity is currently trading at its immediate support near $47.60 level, which if broken might trigger some near-term corrective move.
Technical levels …read more
Source:: FX Street
