Commodities▼ Bearish
Crude Oil Stays Noisy Near 50-Day EMA on Hormuz Standoff
WTI gapped lower before recovering near its 50-day EMA; Brent hit fresh swing highs. FXEmpire's Chris calls crude 'noisy and neutral' until Hormuz resolves.
Continue with
WTI crude gapped lower at the open, then reversed and pushed higher. The contract now sits just above the 50-day EMA, the level many short-term traders use to separate trend from range. The bigger story, FXEmpire senior analyst Chris said, is the noise: prices are moving on each new headline out of the Strait of Hormuz, often in both directions within a few hours.
Interest rates remain a secondary issue, he said. The standoff between the United States and Iran over whether the strait stays open has pushed fundamentals aside, he said, and oil is grinding back and forth while traders wait to see which side flinches first.