Oil Price (WTI Crude) Tumbles Post BoC, Next Target $65

Oil price (WTI Crude) declined sharply from the $73.40 resistance area after the Bank of Canada increased interest rate from 1.25% to 1.50%. It is currently under pressure and it could decline towards the $65 support in the near term.

Recently in Canada, the BoC Interest Rate Decision was announced by the Bank of Canada. The market was looking for a rise from 1.25% to 1.50%, and the result was similar. It prompted an increase in selling pressure on oil and the price declined by more than 4%.

Moreover, the EIA Crude Oil stockpiles report (Jul 02, 2018) was released by the Energy Information Administration. The market was looking for a decline in stockpiles by -4.489M barrels. However, the result was above the forecast, as the stockpiles declined by -12.633M barrels.

The result helped WTI crude oil price in holding the $68.60 support area. Looking at the hourly chart of oil, the price faced a lot of hurdles near the $73.40-50 area. As a result, there was a downside reaction, and the price tumbled below the $72.00 support.

There was also a break below a contracting triangle with support at $72.20 on the same chart. The price declined sharply and settled below the $70.00 support and the 100 hourly simple moving average.

However, losses were prevented by the $68.60 support and a connecting bullish trend line. The price is currently correcting higher and is testing the 23.6% Fib retracement level of the last decline from the $73.35 high to $68.68 low.

However, there is a key resistance near $70.50 and the 100 hourly SMA. Above this, the 50% Fib retracement level of the last decline from the $73.35 high to $68.68 low may act as a resistance.

Overall, the price remains in a downtrend as long as it is below $71.00. A downside break below $68.60 could open the doors for more losses towards the $65.00 support.

In the Forex arena, the US Dollar gained traction recently. Pairs like EUR/USD and GBP/USD declined, and USD to INR remained in a major uptrend. Gold price was also under pressure below the $1,250 level.coin

In the cryptocurrencies arena, bitcoin price declined sharply and broke the $6,500 support. Ethererum price is also under pressure and is currently trading below the $460 support.

Other altcoins such as ICX, Bitcoin cash, ADA, BNB, and Litecoin also faced an increased selling pressure during the past two days.