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WTI slips below $79 as traders weigh US-Iran escalation
WTI was down more than 1% on the day near $79.0, with support cited around the 200-day EMA at $77.3.
WTI crude traded just below $79 per barrel in the Asian session Thursday, slipping from an over one-month high reached earlier this week as traders held back on fresh positions ahead of developments in the Middle East, FXStreet said.
FXStreet pointed to intensifying US-Iran tensions, including a new wave of US airstrikes on missile and drone infrastructure and retaliatory drone and missile attacks on US-linked facilities. It also noted that the US naval blockade of Iranian ports and the closure of the Strait of Hormuz could keep supporting crude.
From a technical standpoint, the article said this week’s breakout above the 23.6% Fibonacci retracement level of the April to July decline and the 200-day exponential moving average helped underpin bullish sentiment. It cited the 200-day EMA near $77.28 and the 23.6% retracement around $76.59 as near-term support, while deeper weakness toward the $67.07 cycle low could challenge the current bullish bias.
On the upside, FXStreet identified resistance beginning at the 38.2% Fibonacci level near $82.47, followed by the 50.0% retracement around $87.23, with higher targets including the 61.8% retracement near $92.0 and potential upside levels at $98.75 and $107.38 if price action strengthens.
Latest closeWTI crude $95.27 ▲3.4%