Forex▼ Bearish
Crude Oil Hits New Low Since Feb 27 Pre-Iran Conflict
Crude settled at $68.58, the weakest since Feb 27 before the Iran conflict began. Technical resistance at $70.04 and $71.65 must be reclaimed to shift the downtrend.
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Crude oil futures settled at $68.58 a barrel Tuesday, down $0.92 or 1.32%. The session low of $68.03 marked the weakest level since Feb. 27, the day before the Iran conflict began. The geopolitical risk premium that had pushed prices above $70 has largely evaporated.
Crude oil's decline has implications for commodity currencies like the Canadian dollar, which traders track in forex market analysis.
From a technical standpoint, the decline established a new cycle low. The 100-hour moving average sits at $70.04, followed by the 200-hour moving average at $71.65. A sustained move above those levels is the first sign traders watch for that downside momentum is fading. The 200-day moving average at $73.91 remains a longer-term resistance.
A break above $70.04 and then $71.65 is needed to reduce the bearish bias, traders said. The 200-day average at $73.91 is the next hurdle. A drop below $68.03 targets the Feb. 27 settlement at $67.28, the next support.
The weekly close below $68.58 leaves that Feb. 27 level as the next reference point.