FxWirePro: US Oil snaps two-day winning streak, bearish RSI divergence keeps scope for downside

USOIL chart - Trading View 

WTI crude oil was trading largely muted at 65.80 at around 12:30 GMT. Price trades in narrow range, hit session high at 66.20 and low at 65.43.

Bulls catch a breather after testing multi-month tops earlier in the week, outlook remains bullish.

A drawdown in the US crude stockpiles earlier this week also helped push the prices higher. 

Technical bias for the pair is bullish. Doji formation on the day's candle at the time of writing dents upside.

Also, a bearish RSI divergence from price action on the daily charts adds to the downside bias. 

Expectations of faster global economic growth, driven by massive stimulus and successful vaccine rollouts support oil prices.

Further, reports that Saudi Arabia has announced cuts crude supply to at least four north Asian buyers for its April-loading is likely to keep downside limited.

Pullbacks are likely to find strong support at 21-EMA at 62.15. Breach below could change near-term dynamics.