WTI Crude Oil (current price: $49.03)
Oil followed risk assets lower in early trading on Monday, but ended the session off its intraday low, as the U.S. Dollar got weaker later on. The crucial commodity is down again this morning after it exited a steep advancing trend channel yesterday. The longer-term trend is still bullish, but the short-term indicators point to a deeper correction, possibly as low as $45 per barrel. The FED-decision on Wednesday might have a major influence on the price, but volatility is expected to stay elevated until next week.
Our assessment: Oil is still above the key $47 support level following a remarkably strong rally since February. The commodity is still overbought, and the current risk-off sentiment might push oil even lower.
