FxWirePro- Crude oil Daily Outlook

Crude oil declined nearly 6% this week on demand concern. It hit a low of  $68.73 and is currently trading around $69.47.

According to EIA, crude inventories decreased by 6.9 million bbl the previous week,  compared to a forecast of -0.6M.

US economy has added 142000 jobs in Aug, below the forecast of 162000. Unemployment rate came at 4.2% in-line with estimate of 4.2%. Average hourly earnings surged to 0.4% compared to a forecast of 0.30%.

Major factors supporting higher Crude oil prices,

US dollar index - Bearish

US treasury yield-  bearish (positive for commodity market).

Major resistance- $71.70.Any breach above will take the commodity to the next level $72.80/$73.20. Major trend reversal only above $84.50.

The near-term support is around $68.70, any violation below targets $67.75.

Indicators (4- hour chart)

ADX- Bearish

CCI (50) - Bearish

 CCI (14)- Bearish

It is good to sell on rallies around  $71.48-50 with SL around $72.50 for TP of $67.75.