WTI loses up to 7.29% on the week, trades below $ 63.00

• Oil slides for the fifth day in a row, almost 1% less.
• The increase in Covid boxes around the world could affect the demand for crude.
• The recent strength of the US dollar keeps oil prices under pressure.

The oil it extends its decline in the week, is down almost 1.38% in the session and is trading below $ 63.00 around $ 62.78. Yesterday it closed at $ 63.65 registering a loss of 0.94%.

Prices are affected by the increase in the cases of the Delta variant, which could decrease the demand for crude worldwide. Additionally, questions are beginning to arise about the vaccine’s efficacy, as the United States will begin the covid-19 vaccine booster program for September 20.

Risk appetite remains weak, with some of the commodity currencies such as the AUD, NZD and CAD falling 0.08%, 0.12% and 0.16%, respectively, against the dollar. Yields on 10-year US Treasuries rose 10bps to 1,252%, while the DXY, which tracks the value of the US dollar against six currencies, gained 0.05%.

Oil prices are being influenced by the dollar, whose recent strength lies in the Fed’s expectations of reduction of bonds. The Jackson Hole Symposium is approaching, where the speech of President Jerome Powell is the most anticipated by investors.

Perspectiva técnica of the WTI

The WTI is trading between the 100 and 200 DMA. The 50 DMA is around $ 70.00. In today’s session, it retraced a decline to the $ 62.00 price and to the midpoint of the $ 62-63.97 range. On the downside, the first support is $ 62.00, followed by the May 21 low of $ 61.52, then $ 61. Contrary to the upside, the first resistance is at $ 63, followed by $ 64, then the May 20 low around the $ 64.95-65 range.

The RSI is at 30.54 and heading towards oversold levels, supporting the downtrend, while the average true range is $ 2.13 stable on the session.

Technical levels