WTI Crude Rises To One-week high as Dollar weakens

U.S. crude extended gains in subdued trade on Friday as the dollar slipped to a three-year low, with many Asian markets closed for the Lunar New Year holiday.

WTI crude for March delivery was up 54 cents, or 0.86 percent, at $61.88 a barrel by 0750 GMT, after earlier touching a one-week high of $61.82. For the week, the contract has risen about 4 percent after losing nearly 10 percent last week. Brent crude was up 57 cents, or 0.89 percent, at $64.90 after settling down 3 cents. Brent is up nearly 3 percent for the week after falling more than 8 percent last week.

“Oil is getting support from a rebound in global stock markets and a weak dollar, but the upside is limited due to a projection for rising U.S. production,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

“The market is quiet due to a slew of holidays in Asia.”

The dollar slipped to a three-year low against a basket of currencies on Friday. A weaker dollar often boosts prices for oil and other dollar-denominated commodities.

On the technical charts, WTI crude is trading above the 200 day EMA and below the 9 day and the 20 day moving averages. The RSI is at 47.56 and the MACD is below the signal line and is ready to make a positive crossover above the signal line.

Trade suggestion:

Buy stop at 61.79, take profit at 62.10, Stop loss at 61.49

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