US Oil Heads Towards Daily Support

Technical analysis of Forex market

WTI crude fell as US inventory rose by 3.6M barrels last week.

The bearish MA cross on the daily chart could be the start of consolidation for the days to come. The fall below 71.80 is an indication that sentiment has turned sour in the short term at least.

The price is grinding down along the 30-hour moving average. The RSI’s double-dip in the oversold area may prompt a limited bounce.

But as long as the price stays below 70.80, sellers are likely to drive the action towards 66.00, a critical demand zone on the daily timeframe.