WTI slides to a fresh month low at $62.38, later retraced towards $63.50

• WTI falls on US dollar strength and fears of slower demand due to Covid-19 cases rising.
• Feds’ prospects of a bond tapering prompt the US dollar to a nine-month high.
• WTI short-term trend tilted towards the downside.

WTI falls by 1.15% as recent US dollar strength hits the markets and fears about a weaker demand as Covid-19 infections rise.

Recently in the session, the US dollar index printed a nine-month high at 93.58, a 0.42% gain on the possibility of a bond taper by the Federal Reserve by the end of the year.

WTI technical outlook

WTI’s sixth day in a row fall was capped at $62.35. The short-term daily moving averages are above the current market price, while the 200-dma remains as support at $60.58. If the price is going to continue lower, first it will need a break under May 21 low at $61.50, followed by a sustained break below April 22 low around $60.58. On the other hand, to the upside, the first resistance level is April 20 high at $64.34, followed by May 20 high at $66.61, then a challenge towards the 100-dma at $67.63.

RSI is 31.30 and heading toward oversold level, while the average true range is 2.32 and aiming higher.