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WTI crude oil prices fell below $70 per barrel, extending losses amid a key declining channel forming on the 4-hour chart with resistance at $70.85. The technical analysis highlights potential for a rebound in gold if it breaches $4,200, while USD/JPY saw gains above 162.50 before a minor pullback. The US Non-Farm Payrolls (NFP) report is expected to influence market sentiment significantly, with traders closely monitoring its impact on oil and broader commodity markets.
The bearish pressure on WTI reflects ongoing concerns about global demand and supply dynamics, particularly in the energy sector. Traders are balancing technical indicators with macroeconomic data, as the NFP report could trigger volatility in both energy and forex markets. A weaker-than-expected NFP might weaken the USD, indirectly supporting oil prices, while a strong report could reinforce USD strength and pressure commodities.
For Gulf and MENA investors, the interplay between the NFP, USD/JPY movements, and oil prices is critical. The region’s energy-dependent economies are sensitive to oil price fluctuations, and the USD’s performance against the yen could affect trade balances. Traders should watch the NFP release, key resistance levels in WTI, and gold’s attempt to reclaim $4,200 as pivotal short-term indicators.
