WTI approaches $38.00 on geopolitical risks

By FXStreet FXStreet (Edinburgh) – Crude oil prices are now reverting the initial negative tone, trading around $37.00 per barrel ahead of US data.

WTI stronger on Iran-Saudi Arabia

Fresh geopolitical concerns have re-emerged over the weekend between Iran and Saudi Arabia, which are now sustaining the upside momemtum around the barrel of West Texas Intermediate.

In addition, the selling mood around the greenback has been lending support to the USD-denominated space since the Asian trading hours, giving extra oxygen to the barrel of crude oil.

WTI levels to watch

At the moment the barrel of WTI is up 1.54 % % at $37.80 facing the next resistance at $40.91 (55-day sma) ahead of $42.46 (50% Fibo of $50.90-$33.98) and then $42.81 (100-day sma). On the flip side, a breakdown of $33.98 (2015 low Dec.21) would expose $32.40 (monthly low Dec.2008).
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Source:: FX Street