Crude oil prices on the WTI and Brent benchmarks are trading lower this Monday after taking a hit from European vaccine news. Several EU nations have halted the AstraZeneca coronavirus vaccinations on increasing safety concerns.
Ireland, Netherlands, Spain, Norway, Italy, France, Denmark and most recently Germany have all suspended the rollout of the AstraZeneca vaccinations after fears that the vaccine could have an association with the development of life-threatening thrombotic disorders. Germany’s agency for the regulation of vaccinations says it has been receiving reports of people developing blood clots after the vaccine jab since Thursday, prompting its suspension order. The WHO says it will investigate the reports.
However, the panic was enough to put off risk takers in the market, driving sentiment towards safe-haven assets such as the US Dollar. Brent crude is down 0.27% as of the time of writing.
Technical Levels to Watch
Declining tops on the 4-hour chart indicate that the upside move has stalled. This is confirmed by the failure swing on the RSI indicator. The downside move initially found support on the 67.74 price level, but bounced from there. There is lack of follow-up bullish momentum at the moment, which could open the pathway for a retest of 67.74. If that support is taken out, 66.81 becomes the next target for bears. This price level could serve as a neckline that defines the outcome of the potential double top. If that support also gives way, we could see a decline towards the 64.26 price objective, with 65.95 serving as a potential pitstop.
On the other hand, further advance beyond last week’s pre-pandemic high at 71.44 requires bulls to push for a higher high above that price point, which possibly targets 73.34. Such an advance requires sufficient buying momentum to initiate a breakout above the 70.01 price point.
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Crude Oil Price; Daily Chart
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