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It's been a relatively quiet week for EUR/USD, and pair is unchanged on Thursday. Currently, the pair is trading at 1.1341, up 0.04% on the day. It's a very busy day for fundamentals in the eurozone and the United States. German CPI declined 0.8%, matching the forecast. Manufacturing data was dismal, as German and eurozone manufacturing PMIs dropped below the 50-level, pointing to contraction. Services PMIs were stronger, as the German and eurozone readings indicated expansion. In the U.S., the markets are expecting positive news. Durable goods orders is projected to post a strong gain of 1.6%, while unemployment claims is forecast to fall to 228 thousand.

The global trade war continues to weigh on the manufacturing sectors worldwide, and the eurozone and Germany have not been immune. German manufacturing PMI fell to 47.6, its second successive contraction. This was the lowest level since December 2012. The all-euro reading slipped to 49.2, its first contraction since June 2013. Earlier this week, ZEW economic sentiment surveys posted scores deep in negative territory for Germany and the eurozone. With the German locomotive showing clear signs of a slowdown, the ECB is unlikely to raise rates in the near future, possibly holding off until 2020.

The Federal Reserve minutes release failed to excite investors, as the euro is showing little movement. Policymakers spelled out that the Fed will remain cautious, stating that a “patient approach to monetary policy” was appropriate. However, policymakers added that if economic projections improved, the Fed could revise the “patient approach”. The minutes noted that the employment market had strengthened and economic activity was rising, but expected GDP in 2019 to slow down compared to 2018.

Copper price eases from new seven-month high at $2.9235, posted on Wednesday, as dollar firmed after Fed minutes on revived hopes of possible rate hike in 2019.

Profit taking after steep four-day rally and overbought daily studies could spark corrective action after bulls stalled on approach to important barriers at $2.9280/2.9355 (Fibo 50% of $3.3140/2.5420 fall/weekly cloud top.

Initial support at $2.8827 (Fibo 23.6% of $2.7505/2.9235) stays intact for now, with extended dips to be ideally contained above $2.8574 (Fibo 38.2%) to keep larger bulls intact.

Bullish stance is supported by daily MA's in full bullish setup with today's formation of 20/200SMA golden cross and strong bullish momentum, adding to positive sentiment.

Dips towards $2.8574 Fibo support are seen as positioning for fresh advance, while break here would weaken near-term structure and risk test of pivotal 10SMA ($2.8251).

Res: 2.9175, 2.9235, 2.9280, 2.9355
Sup: 2.8827, 2.8574, 2.8370, 2.8251

During Wednesday's trading session, the yellow metal traded sideways to appreciate against the U Dollar by 38 pips or 0.03%. On Thursday morning, the rate was located at the 1,335.74 mark.

In regards to the near-term future, the 100-hour simple moving average will support the gold to break the resistance of the monthly R1 at 1,340.10. Most likely, the yellow metal will end the trading session at the 1,340.00 level.

On the other hand, today's US Durable Goods Orders and Core Durable Goods Orders data release at 13:30 GMT could push the yellow metal to depreciate against the US Dollar to pass through the support level of the 100-hour SMA to trade near the 200-hour simple moving average

During Wednesday's trading session, the rate was trading sideways to end the trading day at 110.60 as it was predicted. On Thursday morning, the currency exchange rate was trading between the 55-hour and the 100-hour simple moving averages to be located at the 110.74 mark.

In regards to the near-term future, most likely, the rate will bounce off the 61.80% Fibo at 110.77 to trade sideways at the 110.60 level.

However, today's US Durable Goods Orders and Core Durable Goods Orders data release at 13:30 GMT could push the US dollar to appreciate against the Japanese Yen to break the resistance of the 61.80% Fibo to trade at the 110.80 level.

During Wednesday's trading session, the currency exchange rate traded sideways to end the trading session at 1.3000 as it was predicted. On Thursday morning, the rate to broke the weekly R2 to trade at the 1.3068 mark. Note, the chart was reviewed and some corrections were applied!

Most likely, the British Pound will trade sideways to stay above the weekly R2 at 1.3060 during the day. Meanwhile, the 55-hour simple moving average will try to catch up on the rate.

On the other hand, today's US Durable Goods Orders and Core Durable Goods Orders data release at 13:30 GMT could push the rate to pass the weekly R2 at 1.3060 to trade at the 1.3000 level.

During Wednesday's trading session, the European Single Currency was trading sideways to stay at the 1.1320 level.

In regards to the near-term future, most likely, the currency exchange rate will pass the resistance of the weekly R1 at 1.1345. The 100-hour simple moving average should support the surge during the day.

However, the European Single Currency could depreciate against the US Dollar during today's US Durable Goods Orders and Core Durable Goods Orders at 13:30 GMT to pass through the 100-hour SMA towards the 200-hour SMA at the 1.1307 mark.

Notes/Observations

Asia:

• Major European PMI data was mixed in session. Germany's export-heavy manufacturing sector fell deeper into contraction territory while Euro Zone registered its 1st contraction in over 5 years. (Beats: France; Misses: Germany, Euro Zone).
• European bourses cautious in trading despite continued trade talk optimism and the promise of patience by the Fed

Asia:

• Australia Jan Employment Change: +39.1K v +15.0Ke; Unemployment Rate: 5.0% v 5.0%e
• Japan Feb Preliminary PMI Manufacturing: 48.5 v 50.3 prior (1st contraction reading since Aug 2016)
• China's benchmark interest rate cut said not imminent by the PBoC despite stronger CNY currency (Yuan) and cooling inflation, benchmark rate cut remains 'last resort' for if growth slows 'sharply'. Fears of resorting to old way of adjusting rates could undermine reforms. PBOC likely to cut market-based interest rates, make further RRR cuts to spur credit. (Note: PBoC last cut the benchmark interest rate back in Oct 2015. Current one-year deposit rate at 1.50%; Current one-year lending rate at 4.35%)

Europe:

• Fitch placed UK's 'AA' sovereign rating on Watch Negative (RWN) citing the heightened uncertainty over the outcome of the Brexit process
• UK PM May and EU's Juncker joint statement noted that they had a productive meeting with talks focusing on potential guarantees around Irish backstop. Discussed what could be done to assure Irish backstop would be temporary in nature. Looked at alternatives to replacing backstop in the future. Confirmed commitment to avoiding hard border on Ireland
• EU's Barnier: reiterated that would not renegotiate terms of the Brexit withdrawal
• EU's Tusk stated that extending negotiations over time would be better than a no-deal Brexit. Extension was always an option if the UK failed to work out a sensible solution . He hoped that UK was aware that a 'no deal' Brexit was unacceptable
• UK Attorney Gen Cox said to be preparing to offer a unilateral exit mechanism to the backstop that includes a 12-month notice period (Note: EU said to want UK Parliament to vote on backstop changes before summit)
• EU commission said to be releasing a draft report on Italy during the week of Feb 25th and will not the country fails to achieve long-term growth. The report to criticism Citizens Income and lower pension age

Americas:

• FOMC Jan Minutes noted that financial conditions had tightened since Sept and that global growth had moderated. Almost all participants thought that it would be desirable to announce before too long a plan to stop reducing the Federal Reserve's asset holdings later this year. Favored patient approach to observe effects of past rate hikes; many participants not yet clear what adjustment to rates might be necessary later this year
• US and China drafting 6 MOUs related to key structural issues in trade dispute, MOUs said to cover intellectual property (IP), services, tech transfer, agriculture, currency and non-tariff barriers

Energy:

• Weekly API Oil Inventories: Crude: +1.3M v -1M prior

Macro

• (UK) United Kingdom: Fitch reported that it may downgrade the UK's AA rating stating that "a no-deal Brexit would lead to substantial disruption to UK economic and trade prospects, at least in the near term." Fitch currently assumes that the no-deal exit scenario will be avoided, in the event that Britain does leave the EU without a deal, they see a significant risk of recession in the UK economy similar in magnitude to the early 1990s, when GDP fell by 2% over a period of six years.
• (EU) Eurozone: The manufacturing sector is now in contractionary territory as suggested by PMI reading which hit a 69 month low in February. The wider Eurozone level and there are still plenty of headwinds, including the lingering trade tensions and the threat of tariffs on car imports from the EU into the US. Survey compiler Markit also reported that there were signs of "inflationary pressures waning", which will add to expectations for another round of TLTRO loans.
• (US) United States: Hopes that the US and China were nearing a deal on trade increased amid unconfirmed press reports which suggested the two sides have started to outline commitments in principle in what is described as the most significant progress yet. The two sides still apparently remain far apart on US demands for structural reforms in the Chinese economy, but a broad outline for what could constitute a deal has started to emerge.

SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM

Equities

• Indices [Stoxx600 -0.11% at 3, FTSE -0.63% at 7,183.25, DAX +0.17% at 11,421.85, CAC-40 -0.06% at 5,192.70, IBEX-35 0.00% at 9,180.87, FTSE MIB -0.36% at 20,231.50, SMI +0.52% at 9,363.70, S&P 500 Futures +0.12%]
• Market Focal Points/Key Themes: European Indices trade mixed this morning following the Jan Flash PMI data out of France, Germany and the Eurozone, with the Eurozone moving into contraction territory marking the lowest reading in almost 6 years. The FTSE 100 trades under pressure following weakness in components Centrica and BAE systems which trades sharply lower following earnings, with Barclays trading higher by around 3% following a positive earnings. In France Bouygues, Veolia, Vallourec and Axa trades higher following earnings while Technip FMC trades lower. Elsewhere Maersk trades almost 10% lower on earnings and a weaker outlook, with Saf Holland, Siltronic, Fuchs Petrolub, Hays and AccorHotels among other names trading lower. Purplebricks also drops sharply after its trading update and the stepping down of its UK CEO and US CEO. Looking ahead notable earners include Domino's Pizza, Reliance Steel, Quanta, Bunge and Wendy's.

Equities

• Consumer discretionary: Go-Ahead [GOG.UK] +3.5% (earnings), Just Eat [JE.UK] -5% (Uber Eats said to cut fees), Accor [AC.FR] -3.5% (earnings; PSG partnership), Hays [HAS.UK] -7.5% (earnings)
• Utilities: Veolia Environment [VIE.FR] +1.5% (earnings), Anglo American [AAL.UK] -0.5% (earnings)
• Financials: Barclays [BARC.UK] +3.5% (earnings; buyback intention), Axa SA [CS.FR] +1.5% (earnings), Swedbank [SWEDA.SE] -8% (analyst action; CEO comments)
• Healthcare: Genmab [GE9.DE] +8% (earnings)
• Industrials: BAE Systems [BA.UK] -6.5% (earnings), Henkel [HEN3.DE] +1% (earnings), Maersk [MAERSKB.DK] -11% (earnings), Heijmans [HEIJ.NL] -5% (earnings)
• Technology: Siltronic [WAF.DE] -9.5% (FY19 guidance)
• Telecom: Bouygues [EN.FR] +3.5% (earnings), Telefonica [TEF.ES] +1% (earnings), Orange [ORA.FR] -1.5% (earnings; post earnings comments)

Speakers

• ECB's Nowotny (Austria): There is a debate with ECB whether normalization should go on; markets do not expect a hike in 2019
• ECB's Praet (Belgium, chief economist): CPI in services had been weaker than expected-
• EU's Juncker stated that the Brexit was a disaster; says he was suffering from Brexit fatigue. Could not exclude the possibility of a no deal with terrible consequences
• Chancellor of the Exchequer Hammond (Fin Min): Will stay in govt to influenece Brexit; could have an opportunity to hold a meaningful vote during week of Feb 25th. House of Commons had struggled to come up with a clear message on what it wants as an alternative to no-deal Brexit. He noted that there was some movement from EU side on backstop
• IMF stated that Sweden Central bank (Riksbank) should defer further rate hikes until the economic outlook was consistent with durably meeting the inflation target
• China Commerce Ministry (MOFCOM) Spokesman Gao weekly press conference noted that it could not any details on talks with the US until they ended
• Japan Cabinet Office (Govt) Feb Monthly Economic Report: maintained its overall economic assessment as domestic economy is recovering at 'moderate' pace.
• Indonesia Central Bank Policy Statement noted that it would take an accommodative macroprudential measures and pursue monetary operation to increase liquidity to support bank lending
• Indonesia Central Bank Gov Warjiyo pre-rate decision commentary noted that it saw the global economy slowing but an easing in its uncertainty. Normalization in advance economies was not as tight as earlier expected. China growth was slowing down due to trade tension and US Fed rate hike path was not as aggressive as previously thought. To pursue accommodative macroprudential policy stance while maintaining stability. Saw improvement in balance of payments (BOP) with current account deficit under control

Currencies/Fixed Income

• EUR/USD saw its initial gains erode after the major European PMI data registered mixed readings. Germany's export-heavy manufacturing sector fell deeper into contraction territory while Euro Zone registered its 1st contraction in over 5 years. Pair at 1.1325 just ahead of the US morning. The data was seen as a potential key assessment for March and beyond whether the medium term outlook had changed and its impact on ECB rate guidance
• GBP/USD drifted off its best level after EU's Juncker seemed a bit pessimistic on the Brexit situation after he noted that could not exclude the possibility of a no deal with terrible consequences. Earlier Chancellor of the Exchequer Hammond had noted that he saw some movement from EU side on backstop issue

Economic Data

• (NL) Netherlands Jan Unemployment Rate: 3.6% v 3.6% prior
• (DE) Germany Jan Final CPI M/M: -0.8% v -0.8%e; Y/Y: 1.4% v 1.4%e
• (DE) Germany Jan Final CPI EU Harmonized M/M: -1.0% v -1.0%e; Y/Y: 1.7% v 1.7%e
• (ID) Indonesia Central Bank (BI) left its 7-Day Reverse Repo unchanged at 6.00% (as expected)
• (FR) France Jan Final CPI M/M: -0.4% v -0.5%e; Y/Y: 1.2% v 1.2%e
• (FR) France Jan Final CPI EU Harmonized M/M: -0.6% v -0.6%e; Y/Y: 1.4% v 1.4%e; CPI Ex-Tobacco Index: 102.67 v 102.67e
• (FR) France Feb Business Confidence: 103 v 102e; Manufacturing Confidence: 103 v 103e; Production Outlook Indicator: -5 v -11e; Own-Company Production Outlook: 6 v 10 prior
• (DE) Germany Jan CPI Saxony M/M: -1.0% v +0.4% prior; Y/Y: 1.4% v 1.9% prior
• (CH) Swiss Jan M3 Money Supply Y/Y: 3.4% v 3.1% prior
• (HU) Hungary Dec Average Gross Wages Y/Y: 10.2% v 10.3%e
• (FR) France Feb Preliminary Manufacturing PMI: 51.4 v 51.0e (2nd straight expansion) ; Services PMI 49.8 v 48.5e; Composite PMI 49.9 v 48.9e
• (DE) Germany Feb Preliminary Manufacturing PMI: 47.6 v 49.8e (2nd straight contraction and lowest since Dec 2012) Services PMI 55.1 v 52.9e; Composite PMI: 52.7 v 52.0e
• (HK) Hong Kong Jan Unemployment Rate: 2.8% v 2.8%e (matches lowest level since Jan 1998)
• (SE) Sweden Q4 Total No. of Employees Y/Y: 2.6% v 2.8% prior
• (EU) Euro Zone Feb Preliminary Manufacturing PMI: 49.2 v 50.3e (1st contraction in 68 months); Services PMI: 52.3 v 51.3e; Composite PMI: 51.4 v 51.1e - (DE) Germany Jan CPI Brandenburg M/M: -0.5% v +0.3% prior; Y/Y: 1.3% v 1.6% prior
• (DE) Germany Jan CPI Hesse M/M: -1.0% v -0.1% prior; Y/Y: 0.9% v 1.4% prior
• (DE) Germany Jan CPI Bavaria M/M: -1.0% v 0.0% prior; Y/Y: 1.7% v 2.2% prior
• (DE) Germany Jan CPI North Rhine Westphalia M/M: -0.7 v 0.0% prior; Y/Y: 1.5 v 1.8% prior
• (IT) Italy Jan Final CPI M/M: 0.1% v 0.1% prelim; Y/Y: 0.9% v 0.9% prelim
• (IT) Italy Jan Final CPI EU Harmonized M/M: -1.7% v -1.7% prelim; Y/Y: 0.9% v 0.9% prelim; CPI Index (Ex-tobacco): 102.2 v 102.1 prior
• (PL) Poland Jan Retail Sales M/M: -19.1% v -19.3%e; Y/Y: 6.6% v 6.4%e; Real Retail Sales Y/Y: 5.2% v 5.2%e
• (PL) Poland Jan Construction Output Y/Y: 3.2% v 12.2% prior
• (UK) Jan Public Finances (PSNCR): -£25.4B v £21.3B prior; Public Sector Net Borrowing : -£15.8B v -£11.1Be; Central Government NCR: -£25.8B v +£18.2B prior; PSNB ex Banking Groups: -£14.9B v -£10.0Be
• (SL) Sri Lanka Jan National CPI (NCPI) Y/Y: 1.2% v 0.4% prior
• (DE) Germany Jan CPI Baden Wuerttemberg M/M: -0.9% v 0.0% prior; Y/Y: 1.6% v 2.0% prior

Fixed Income Issuance

• (ES) Spain Debt Agency (Tesoro) sold total €4.02B vs. €3.5-4.5B indicated range in 2021, 2023 and 2029 bonds
• Sold €1.14B in 0.05% Oct 2021 SPGB; Avg yield: -0.124% v -0.086% prior, Bid-to-cover: 3.25x v 3.86x prior
• Sold €1.07B in 0.35% July 2023 SPGB; Avg yield: 0.164% v 0.289% prior; Bid-to-cover: 2.44x v 1.68x prior
• Sold €1.81B in 1.45% Apr 2029 SPGB; Avg Yield: 1.285% v 1.538% prior, bid-to-cover: 1.23x v 1.96x prior
• (FR) France Debt Agency (AFT) sold total €8.996B vs. €8.0-9.0B indicated range in 2022, 2024 and 2025 bonds (4 tranches)
• Sold €3.499B in 0.00% Feb 2022 Oat; Avg Yield: -0.34% v -0.35% prior; Bid-to-cover: 2.67x v 2.03x prior
• Sold €1.62B in 2.25% Oct 2022 Oat; Avg Yield -0.29% v 0.01% prior; Bid-to-cover: 2.95x v 2.52x prior
• Sold €3.067B in 0.00% Mar 2024 Oat; Avg Yield: -0.09% v -0.06% prior; Bid-to-cover: 2.50x v 2.11x prior
• Sold €810M in 6.0% Oct 2025 Oat; avg yield: 0.06% v 0.57% prior; Bid-to-cover: 3.92x v 2.74x prior
• (SE) Sweden sold SEK500M vs. SEK500M indicated in 0.125% Dec 2027 inflation-linked bonds; Avg Yield: -1.4053% v -1.3909% prior; Bid-to-cover: 3.02x v 4.44x prior

Looking Ahead

• (ES) Spain Dec Trade Balance: -€B v -€2.6B prior
• (SA) Saudi Arabia 4Q Inflation Report
• (AR) Argentina Feb Consumer Confidence Index: No est v 33.1 prior
• 05:30 (HU) Hungary Debt Agency (AKK) to sell 12-month bills
• 05:30 (PL) Poland to Sell Bonds
• 05:30 (UK) DMO to sell £1.5B in 1.75%2057 Gilts
• 05:50 (FR) France Debt Agency (AFT) to sell €1.0-1.5B in inflation linked 2023, 2027 and 2036 bonds (Oatei)
• 06:00 (IL) Israel Dec Manufacturing Production M/M: No est v -2.6% prior
• 06:30 (IS) Iceland to sell Bonds
• 06:45 (US) Daily Libor Fixing
• 07:00 (BR) Brazil Mid-Feb IBGE Inflation IPCA-15 M/M: 0.4%e v 0.3% prior; Y/Y: 3.8%e v 3.8% prior
• 07:30 (EU) ECB Account of Governing Council Meeting (Jan Minutes)
• 07:50 (US) Fed's Bostic (dove, non-voter)
• 08:00 (PL) Poland Central Bank (NBP) Feb Minutes
• 08:00 (RU) Russia Gold and Forex Reserve w/e Feb 15th: No est v $475.0B prior
• 08:00 (UK) Baltic Dry Bulk Index
• 08:30 (US) Feb Philadelphia Fed Business Outlook: 14.0e v 17.0 prior
• 08:30 (US) Initial Jobless Claims: 228Ke v 239K prior; Continuing Claims: 1.74Me v 1.773M prior
• 08:30 (US) Dec Preliminary Durable Goods Orders: 1.7%e v 0.7% prior; Durables Ex Transportation: +0.3%e v -0.4% prior; Capital Goods Orders (Non-defense/ex-aircraft): +0.2%e v -0.6% prior; Capital Goods Shipments (Non-defense/ex-aircraft): 0.0%e v -0.2% prior
• 08:30 (CA) Canada Dec Wholesale Trade Sales M/M: -0.2%e v -1.0% prior
• 09:45 (US) Feb Preliminary Markit Manufacturing PMI: 54.8e v 54.9 prior; Services PMI: 54.3e v 52.4 prior; Composite PMI: No est v 54.4 prior
• 10:00 (US) Jan Existing Home Sales: 5.00Me v 4.99M prior
• 10:00 (US) Jan Leading Index: +0.1%e v -0.1% prior
• 10:00 (MX) Mexico Central Bank (Banxico) Feb Minutes
• 10:30 (US) Weekly EIA Natural Gas Storage Inventories
• 11:00 (US) Weekly DOE Crude Oil Inventories
• 11:00 (US) Treasury announcement for upcoming issuance in 2-year, 5-year and 7-year notes
• 11:30 (US) Treasury to sell 4-Week and 8-Week Bills
• 11:30 (IT) Italy Debt Agency (Tesoro) announcement on upcoming BTP auction for Wed, Feb 27th
• 12:35 (CA) Bank of Canada (BOC) Gov Poloz
• 13:00 (US) Treasury to sell 30-year TIPS
• 14:00 (AR) Argentina Jan Trade Balance: $1.1Be v $1.4B prior; Total Exports: No est v $5.3B prior; Total Imports: No est v 3.9B prior

Minutes of the US Federal Reserve Bank’s January meeting bumped equities across the globe slightly higher. On Thursday morning, futures on the S&P 500 rose to the highest level since 3 December, while European futures were also wearing green. The Eurostoxx 50 was up 0.25%, the German DAX 0.30% and the SMI 0.25%. Only the FTSE lost ground, down 0.40% amid Brexit uncertainties.

The Fed is worried about a slowing economy, not only in China but in general, and that too much tightening could derail the current dynamic. The Fed is leaving the door open for a further interest increase this year. The surprise was its much more dovish stance regarding the balance sheet reduction. The Fed is now considering backing off before the end of the year, or at least to stop reducing before the end of the year. Investors knew the balance sheet would not return to pre-crisis levels, but they were expecting it to become much smaller than USD 3 trillion. Fine, but with already low interest rates and a gigantic balance sheet, what tricks the Fed use in a crisis?

Aussie tumbles on trade

After Australia forbid Huawei Technologies from supplying a 5G mobile network on the grounds of national security risks in August 2018, Chinese authorities have lashed back. They banned Australian shipments of coal to Dalian and prolonged customs clearance in major ports. Australian exports face major losses. Yet the sanction seems limited, as inventories of low-sulphur coking coal used for Chinese steel remain low (1–2 months: Australia supplies 40+% of China’s demand. This will moderate the current fall in the Aussie. Short-term, AUD/USD (1.1331) is expected to continue its decline, approaching 1.1320.

The dollar index found strong resistance around the 97.20 obstacle, driving the price lower. Currently, the price has been developing in a sideways channel over the past five months with upper boundary the 97.50 resistance and lower boundary the 94.60 support. Chances for a reversal in the short-term are increasing as the price failed to drop beneath the 50-day simple moving average (SMA).

The short-term bias looks positive as the RSI indicator keeps gaining ground above its 50 level, while the stochastic oscillator is ready for a bullish crossover within the %K and %D lines near the oversold zone.

The 23.6% Fibonacci retracement level of the upward movement from 88.10 to 97.50 around 95.28, which overlaps with the 200-day SMA could be a trigger point for bearish actions if the index manages to slip below 50-day SMA. If the price continues to drop, support could next come somewhere between 94.85 and 94.60, the lower boundary of the range.

However, if the price continues the latest slightly bullish move, investors could find resistance near the 97.20 barrier and then at the 97.50 strong obstacle, which halted bullish movement at the end of the previous year.

Overall, the dollar index seems to be neutral and only a drop below 94.60 could change the neutral outlook to bearish. On the other side, a jump above 97.50 could switch the recent view to bullish.

WTI oil consolidates below new 2019 high ($57.58) on Thursday, after Wednesday's advance eventually broke above falling 100SMA ($56.74) which obstructed bulls in past two days.

Prevailing bullish sentiment was boosted by fresh optimism over US/China trade conflict on news that signaled that two countries are step closer to reach deal.

API report, released on Wednesday, showed increase in US crude stocks by 1.3 mln bls, below expected build of 3.5 mln bls that additionally boosted oil price.

Daily techs send mixed signals as MA's are in bullish configuration, but stochastic is strongly overbought and bullish momentum is weakening. According to the studies, risk of corrective action remains on the table, but so far without any firmer signal. Broken 100SMA offers solid support at (currently at $56.56) and guards strong supports at $55.73/55 (former high/broken Fibo 38.2%).

EIA crude inventories report is due later today (3 mln bls build vs 3.6 mln bls build previous week) and could provide fresh signals.

Res: 57.58, 58.14, 59.62, 60.00
Sup: 56.95, 56.56, 55.73, 55.55