Oil drops but remains above 60 USD

17/03/2021

Oil price declined 1% on Wednesday, and the WTI benchmark was seen 1% weaker during the US session, trading at around 64.30 USD.

The price is now testing previous highs at around 63.70 USD, which is strong support and has already been held a couple of times. If oil drops below that level, further decline toward the 20-day exponential moving average seems likely. 

The 20-day EMA is currently at 62.70 USD, and as you can see from the chart, bulls have bought the dip to this moving average many times over the previous months. 

The FOMC's decision is due later in the day, which will most likely cause some oil volatility.

On the upside, the first resistance appears to be near 65 USD, and if oil jumps above that level, we could see another leg higher, targeting the current cycle highs near 37.50 USD. 
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