Brent crude oil ended a range bound session in red on June 24th, however holding Friday’s low at 63.30$ levels. Today in Asia session the price declines further and currently trading at 63.50$, down 0.80%.
According to the daily chart, intraday pivotal is placed at 63.50$, followed by first support at 62.20$ its 20MA.
Turning to the oil Fundamental news, US-Iran trade tensions cap the price at 65.00$ so far. Trump overnight levied new sanction on Iran.
PBS reported that “After tensions with Iran nearly resulted in U.S. airstrikes last week, President Trump has fired a different type of weapon, levying new economic sanctions specifically targeting the Islamic Republic’s supreme leader.”
Looking ahead, traders are waiting for the much-awaited Trump-Xi meeting at the G20meeting (Friday).
Danske Bank said, “Key focus in China will be the G20 meeting where the odds are rising that we could have a ceasefire (again) in the trade war after Trump had a phone conversation with Chinese President Xi Jinping this week”.
Back to the technical picture, after the failure against 65.00$ its 38.2% fib reaction, the price action has started to consolidate between 63.30-65.00$. The break below 63.00$ affects the daily upside bias and paves the way for a deeper bearish correction to 62.00$ and 61.00/60.80$ levels.
The flip side, the resistances are at 65.00$, 66.00$ and 66.80$ its 50.0% fib reaction.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
Have a question? Let us help!
A KTM Analyst is ready to assist you, click on the comment section below