WTI extends fall and mark two-day lows in the $ 37.30 zone

• WTI loses more than $ 2 from Thursday’s highs.
• Pullback accelerated as futures fell on Wall Street.
• Markets with an eye on the election result, employment report and platform count data

El WTI (NYMEX futures) slowed the strong rebound on Thursday, below $ 39.50 and the trend changed. The decline accelerated on Friday and the price just dropped to $ 37.28, the lowest since Wednesday. It is trading around $ 37.50, negative for the day and still under pressure.

Part of the decline is associated with the decline in stock markets. On Wall Street, futures point to an opening with falls between 0.60% and 1%. Despite this, the dollar remains weak. Should the greenback rebound, downward pressures on WTI would be expected to increase.

Adding to the negative outlook is the growth of coronavirus cases in Europe, promoting more restriction measures and complicating the recovery of the economy.

In the US, the attention revolves around the elections where the outcome is still uncertain but Joe Biden is approaching the 270 voters after going to the front in Georgia. The small difference and the non-recognition of President Trump to the results generate uncertainty about what may happen in the next few days after the victory of the Democrat is confirmed.

To complete a loaded week, at 13:30 GMT the US employment report and later the counting of oil platforms.

Technical levels

Considering the pessimistic conditions of the MACD histogram, coupled with the sustained reversal from the key EMAs, oil sellers are likely to target the Oct 2 low of $ 36.79 should there be further declines. However, the $ 38.00 threshold may offer intermediate support, while the September low around $ 36.40 acts as an additional filter to the downside, ”explained FXStreet analyst Anil Panchal.