Technical Analysis:
Currently trading around 75.4, oil can slip towards daily Order block around 73-74. We will wait for a MSS on 4H time frame for buying around 73-74. Price is in downtrend for now but is also in discount so we can look for longs after it reaches our POI.
Fundamentals:
Crude oil prices today are moderately lower, with crude tumbling to a 7-week low. Today's rally in the dollar index DXY to a 2-week high is undercutting energy prices. Also, energy demand concerns in China, the world's second-largest crude consumer, are weighing on crude prices after China recently reported Q2 GDP that was the slowest economic growth in five quarters.
Crude oil prices have underlying support from the Hamas-Israel conflict. Israel's military continues to conduct operations in Gaza, and there is the continued risk that the war might spread to Hezbollah in Lebanon or even to a direct conflict with Iran. Meanwhile, ongoing attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.
Disclaimer: Trading carries risk. Practice effective risk management and consider your risk tolerance before trading.
