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WTI slips below $80 as traders price lower Middle East risk
WTI is trading near a nearly two-week low, after a 4-hour chart breakdown below the 100-period EMA and key Fibonacci levels around $78.6 and $76.3.
WTI crude has been pressured for a third straight session, falling to a nearly two-week low during Wednesday’s Asian trading, with the price hovering just below the $80.00 psychological level, according to FXStreet.
The note points to improving expectations for diplomacy around the Middle East as a driver of fading risk premium in crude. Iran said it restarted talks with Oman to manage commercial shipping traffic through the Strait of Hormuz, while the US offered sanctions relief and an end to a naval blockade in exchange for reopening the waterway and halting attacks by regional proxies.
On the technical side, FXStreet said the overnight move below the 100-period Exponential Moving Average on the 4-hour chart was a trigger for bearish traders. The commodity is also below the 50% Fibonacci retracement level of the recent recovery from the monthly swing low.
The analysis flags near-term downside support at $78.61, followed by $76.27, with a structural floor around $73.30, where a sustained break could extend the bearish phase despite the market being oversold. It also cites momentum indicators, including MACD below zero at -0.65 and an RSI of 23.15, and identifies resistance bands at $80.26, $81.90, and $82.44.
Latest closeWTI crude $82.40 ▲1.4%