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27 Mar 2015
WTI Crude drops below USD 50/barrel
FXStreet (Mumbai) - Crude prices in the US fell below USD 50/barrel on the back of a weaker-than-expected US Q4 GDP and a stronger US dollar.
Falls below hourly 50-MA
Prices breached the hourly 50-MA support located at USD 50.40 as the US dollar remained resilient despite a weaker-than-expected growth number. Moreover, weaker growth in the US could only amplify the supply glut situation in the US.
Meanwhile, the markets have turned bearish on Crude today after the note from Goldman Sachs indicated a very low possibility of supply disruptions due to tensions in Yemen. Price could dip further if the USD extends gains on hawkish comments from the Fed chair Yellen.
WTI Crude Technical Levels
The May futures currently trade at USD 49.89/barrel; down 3.15% for the day. The immediate support is seen at 49.27 (50-DMA), under which losses could be extended to 48.88 (5-DMA). On the flip side, a break above 50.00 could see the futures re-test 50.29 (hourly 50-MA).
Falls below hourly 50-MA
Prices breached the hourly 50-MA support located at USD 50.40 as the US dollar remained resilient despite a weaker-than-expected growth number. Moreover, weaker growth in the US could only amplify the supply glut situation in the US.
Meanwhile, the markets have turned bearish on Crude today after the note from Goldman Sachs indicated a very low possibility of supply disruptions due to tensions in Yemen. Price could dip further if the USD extends gains on hawkish comments from the Fed chair Yellen.
WTI Crude Technical Levels
The May futures currently trade at USD 49.89/barrel; down 3.15% for the day. The immediate support is seen at 49.27 (50-DMA), under which losses could be extended to 48.88 (5-DMA). On the flip side, a break above 50.00 could see the futures re-test 50.29 (hourly 50-MA).