- US oil pauses upside at major trendline resistance at 75.25, slips below 74 levels.
- We evidence 'Spinning Top' formation at highs which raises scope for weakness.
- Bullish bias still intact, technical analysis is showing no major signs of retracement.
- That said, momentum indicators have approached overbought levels, so caution advised.
- US Oil marked in a new high for 2018 at 75.24 on Tuesday's trade and is currently trading at 73.70.
- Focus now on the EIA weekly crude supplies data due to be reported tomorrow for fresh direction.
- Decisive break above 75 will see strong resistance at 75.25 (trendline). Break above 75.25 can take the pair higher to 76.49 (61.8% Fib level).
- On the flipside, 1H 110-EMA is strong support at 73.30, break below will see some weakness.
Call update: Our previous call (https://www.econotimes.com/FxWirePro-US-Oil-tops-73-a-barrel-highest-since-November-2014-1393934) has hit TP2.
FxWirePro Currency Strength Index: FxWirePro's Hourly USD Spot Index was at -39.4729 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
