The US dollar is the best performing G10 currency today as US yields continue to rise amid uncertainty over the US debt ceiling agreement and quickly approaching X date. Strong USD is putting pressure on commodities, especially oil and precious metals.
Taking a look at OIL at H1 interval, we can see that a bearish development occurred today - price dropped below the 200-hour moving average (purple line) as well as a short-term upward trendline. Sell-off continued later on until bulls managed to halt it in the $75.50 support zone. Price bounced off this area but the first attempt to break back above the trendline turned out to be a failure. Should sellers retake control over the market and push the price below $75.50 area, the lower limit of a local market geometry at $74.60 will be in focus. A drop below this hurdle would make outlook more bearish and could hint that a deeper drop is looming.
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Source: xStation5
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