WTI falls after EIA lowers price forecast

By FXStreet FXStreet (Córdoba) – Crude oil prices fell this Wednesday, with West Texas Intermediate crude oil futures down on a generally bid dollar, and an EIA report that lowered its crude-oil price forecasts for this year and next, expecting WTI prices to average $49.23 a barrel this year, from a previous forecast of $49.62. It also reduced its 2016 forecast to $53.57 from the $54.42 previous.

The commodity also fell ahead of the weekly stockpiles report, as US holdings are expected to raise.

WTI technical view

“The black gold trades at its lowest of the week, with the daily chart showing that the price is still holding above a bullish 20 SMA, currently around 43.30, whilst the Momentum indicator maintains its bullish slope, but the RSI indicator already turned south and heads lower around 48”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price failed to advance beyond its 20 SMA, now heading strongly lower above the current level, whilst the technical indicators remain below their mid-lines, whilst the RSI indicator anticipating additional declines, heading lower around 40”.

Support levels 44.00 43.30 42.50. Resistance levels: 45.10 46.40 47.20.
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Source:: FX Street