Oil prices extended gains overnight following the latest API report, which showed a draw in crude oil inventories of 2.1 million barrels; the market was expecting a draw of 2.03 million barrels. Oil surged after OPEC+ struck a bullish tone on demand last week and further gains are likely in the near-term, despite chances of Iran´s return to the global oil market should sanctions be lifted.
Looking at the Monthly chart, the next major obstacle for USOIL lies at 71.93 - which is the 61.8% Fibonacci level of the 2013-2020 decline. A break above this level could pave the way for an extension of the rally towards $76.78, which is the 2018 high.
US equity markets are lagging behind their European counterparts, as inflation concerns continue to weigh on sentiment. Nevertheless, the recovery USTECH is making is progress, and the index broke above the 78.6% Fibonacci level of the May sell-off at 13,831 points. A daily close above this level could signal that the index may test the record high soon. To the downside, imminent support is seen at 13,691 points, followed by 13,466 points.
US inflation data on Thursday will be closely watched by traders. A stronger than expected headline number could bring US equities under renewed pressure, and the technology sector could end up being one of the hardest-hit.
The recovery rally in cryptocurrencies has stalled and the consolidation phase could drag on for a while. Ethereum failed to reach the psychologically important resistance level at $3000 and broke below the rising trendline from the May low. A test of $2274 is likely to follow, with $1898 the next major support level to watch should ETH/USD fail to catch a bid there.
Tighter regulation of cryptocurrencies is inevitable in the long-term, but sentiment has been hit hard by the recent sell-off and a wave of negative news. It could therefore take some time for Ethereum & Co. to recover, despite the fact that interest remains at a relatively high level.
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Investors are still digesting the latest statements from the US central bank, which surprised markets with a far more hawkish stance than expected