Crude Oil Gains Support as Iran Squeezed Out, Trade War Lingers
China, the world second biggest economy, has more to lose if they fail to keep tariffs on hold. How this can impact oil? Find out...
The black gold, crude oil, continues to trade sideways at $52.32, losing -0.76% for the day. Honestly, the market is a bit confused about whether to go long on Iran’s sanctions or to go short on the US-China trade war concerns.
Crude oil exhibits weakness as concerns grew that US-China talks this week would not fix a crack over trade between the world’s largest economies. The US and China are trying to come up with a deal ahead of the March 1 deadline as, after this, the US will increase the 10% tariff to 25%.
China, the world’s second biggest economy, has more to lose if they fail to keep tariffs on hold. In response, their manufacturing may suffer and we may see a drop in crude oil prices. This is why investors are trading oil with a bearish sentiment.
Technically, an upward trendline is supporting WTI crude oil above $52.30. While the 20 periods moving average is still signaling a bearish bias. Crude oil may trade bearish below $53, support becomes resistance level. However, the bullish breakout of $53 can lead oil prices towards $54.15.
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