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Crude Oil Prices Fall on Recession Fears Ahead of Fed Chair Powell’s Testimony -by Ecork

Crude Oil, US Dollar, WTI, Brent, Australian Dollar, Japanese Yen, New Zealand Dollar, Fed, Powell – Talking Points

  • Crude oil prices Decreases with expectations of a recession at higher rates
  • APAC shares Futures and lower markets point to a tough day for the EU and the US
  • everybody Eyes on the Fed Chair’s testimony.WWill Will fighting inflation lower WTI?

Crude Oil is down today as all risky assets come under pressure after yesterday’s comfortable rally.

There have been reports that US President Joe Biden is working on a plan for a gasoline tax holiday. This is advanced Energy Secretary Jennifer GranholmMeeting with oil refinery representatives on Thursday.

West Texas Intermediate crude futures traded as low as $105.00 today, while Brent went to $110.29 a barrel. Both have recovered somewhat since then.

Typical of a de-risking environment, the higher Australian and New Zealand dollars are notably underperforming currencies. The US dollar and the Japanese yen strengthened during the Asian session.

In emerging markets, the Philippine peso fell to its lowest level in 16 years. Other Asian emerging market currencies also fell to varying degrees against the US dollar.

The Asia Pacific islands are a sea of ​​red, though Japanese stocks held up just fine while US futures are pointing to a negative start to their monetary session.

In an online event, not to vote Richmond Federal Reserve President Thomas Barkin He said, “It’s a soul, you want to go back to where you want to go as fast as you can without breaking anything.

This was seen as support for a significant rally at the July FOMC meeting. Such violent hikes by the Federal Reserve raised comments on the possibility or absence of a recession in the US.

The 10-year Treasury bond is flat near 3.26%. Gold is down a bit on the back of the greenback being flat, trading just below $1,830 an ounce.

later today, Federal Reserve Chairman Jerome Powell will Testify before Congress Where he is expected to spend the Fed’s strategy to tackle inflation.

There will be other central bank speakers to look out for, as well as Canada’s CPI.

You can view the full economic calendar over here.

Crude Oil Technical Analysis (WTI)

Crude oil is testing the lower bound of the uptrend channel. Just below this line are 100 days Simple Moving Average (SMA) A slight drop again is the previous low at 103.24.

A breakout below all of these potential support levels could create a bearish momentum.

This step may also be under the minimum 21 days Simple Moving Average (SMA) Based onBollinger Bands Which may lead to fluctuations.

The resistance of the top may be at the break points of 111.20 and 116.57.

Schedule cread in TradingView

— By Daniel McCarthy, Strategist for DailyFX.com

To connect with Daniel, use the comments section below or Tweet embed on Twitter

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