FX.co ★ CL/Crude Oil

West Texas Intermediate (WTI), the US Crude Oil benchmark, gets new bids after yesterday’s favourable two-way moves, and it trades above $91.24 in early European trading on Tuesday. Still, the commodity has been stuck in a range for days as market participants wait for the next developments in the Middle East crisis, with conflicting information coming through. President of the United States, Donald Trump, rejects the peace offer made by Iran to end the military conflict and to immediately open up the Strait of Hormuz if they meet their demands. Additionally, Trump denies reports published by the news outlet Axios, which claims that Trump promised to give sanctions relief and unfreeze frozen assets in exchange for steps taken by Iran regarding their nuclear program. Nevertheless, Trump confirmed that American and Iranian negotiators exchanged messages on Monday and that negotiations would resume sometime this week. Additionally, Saudi Arabia resumed shipments of oil through its East-West pipeline, which was damaged by Houthi drone attacks. Other than that, a positive outlook for the US Dollar could limit USD-denominated commodities. Technically, the bias is bullish in the near term because the black liquid has remained above the 200-period SMA on the 4-hour chart and has recovered the 38.2% Fibonacci level. In addition, momentum indicators support the bullish tone. RSI(14) is slightly above 50, while MACD is printing a slight positive reading, suggesting ongoing upward pressure. Meanwhile, the next resistance is around the 23.6% Fibonacci retracement level at $95.31, followed by the high-cycle anchor near $102.04; a breach would open the door for an extended bullish move. As far as support goes, the first will be the 38.2% Fibonacci retracement at $91.15, followed by the 200-period SMA on the 4-hour chart at $89.69 and the thick Fibonacci support around the 50.0% level at $87.79.