WTI bounces–back towards $ 66 ahead of EIA data

• Fresh USD supply, Middle East tensions underpin.
• Looks to regain $ 66 mark on bullish EIA crude stockpiles data?

Having witnessed a brief consolidative phase so far this Wednesday, WTI (oil futures on NYMEX) picked-up strength and swung back towards the nine-day high of $ 65.86, as escalating Middle East geopolitical tensions and optimistic comments by the OPEC officials underpin the sentiment.

The barrel of WTI also found a fresh lift on the back of renewed selling seen in the US dollar across its main rivals, as the Chinese President Xi’s calm talks induced risk-on fades. The USD index drops -0.15% to trade near two-week troughs of 89.14.

Looking ahead, the focus now remains on the US CPI data and Energy Information Administration (EIA) crude stockpiles report due later in the NA session for near-term trading opportunities.

WTI Technicals

At $ 65.80, the next resistances are aligned at $ 66 (psychological levels), 66.50/55 (psychological levels/ multi-month tops) and $ 67 (round number). To the downside, supports are located at $ 65.08 (March 26 low), 64.25 (20-DMA) and 63.82/76 (5 & 10-DMA).