WTI re-takes $ 63 ahead of US GDP, EIA report

• Powell’s testimony-led USD buying wanes.
• Rising US output levels dent sentiment.
• Markets await US EIA crude stockpiles data for next direction.

WTI (oil futures on NYMEX) is seen breaking higher from its Asian consolidative range in the European session, as the bulls look to regain the 63 handle heading towards the key EIA crude supplies report.

The latest upmove in the black gold can be mainly attributed to fresh USD selling across the board, as the DXY ran into the 90.50 resistance amid fading optimism over the new Fed Chair Powell’s Congressional testimony.

However, the recovery attempts are likely to remain capped amid expectations of an inventory build-up to be reported by the US EIA. Moreover, the prices came under pressure after downbeat Chinese, Japanese and Indian manufacturing sector data raised concerns over the Asian economic slowdown, which in turn could weigh down on the demand for oil.  

Furthermore, looming concerns over rising US oil output levels continue to dent the sentiment around the oil markets. Later today, the official US government data from the EIA will be reported, which will have a major impact on the commodity.

WTI Technical Levels

At $ 62.76, the resistances are aligned at $63 (round number) and $63.36 (5-DMA) and $63.84 (classic R1). On the downside, the supports are located at $62.50 (psychological levels), $61.72 (20-DMA) and $61 (key support).