WTI crude is hovering just below $70 as the war premium unwinds and traders price in the prospect of Middle East peace. FXEmpire analyst Christopher Lewis reads the market as neutral, with a possible summer range stretching toward the 200-day EMA near $78.75.
West Texas Intermediate is drifting just below the $70 level, a round figure that FXEmpire analyst Christopher Lewis flags as psychologically significant. The market has now completed a full round trip from the spike that followed the outbreak of war, sitting around the middle of the gap that move opened.
That reversal leaves crude looking for a bottom rather than a direction. Lewis frames the current action as a market that may be trying to find its summer range, one that could extend toward the 200-day EMA around $78.75. He suggests buying dips may still work in general but expects nothing dramatic, calling the tape noisy.
Brent is running the same play, also trying to test the $70 level after filling its own gap. The price action has slowed, and Lewis says he feels no rush to buy, expecting only that some bounce arrives sooner or later — over days or weeks, with no certainty on timing.
Underpinning the calm is the market's attempt to price in peace in the Middle East. But the analyst cautions it would not take much to flare tensions again; absent fresh military conflict, oil probably finds its floor and range trades through the summer, as it typically does.
Source: FXEmpire
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