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  • Easing on profit-taking after three straight days of gains.
  • Looks to US GDP figures and rigs count data for fresh direction.

WTI (oil futures on NYMEX) is on a gradual retreat from the weekly tops reached near $ 70 level a day before, although remains on track to book first weekly gains in three weeks.

WTI losing sight of $ 70 mark?

The barrel of WTI fell for the first in four days, as markets resorting to profit-taking ahead of the key US Q2 advance GDP release, which could trigger sharp US dollar moves, eventually having a significant bearing on the USD-sensitive oil.

Meanwhile, the post-ECB sell-off in the EUR/USD pair resumed that the US dollar closer towards the 95 handle versus its main peers. Hence, the renewed broad-based US dollar strength also adds to the weight on the commodity.

WTI rallied hard yesterday on reports that Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane. Additionally, falling US crude stockpiles collaborated to the upside.

Looking ahead, markets await the US GDP figures and drilling activity report for near-term trading opportunities in the black gold.

WTI Technical Levels

According to Swissquote Bank Research Team, “Long positions above 68.95 with targets at 70.15 & 70.60 in extension. Below 68.95 look for further downside with 68.70 & 68.35 as targets. The RSI is mixed with a bullish bias.”