Crude oil consolidates at a key support as the market awaits new catalysts for direction

Crude oil erased all the war
gains following the end of the Israel-Iran conflict as the geopolitical risk premium vanished. The focus now switched back to global growth.

The market was already supported by
positive growth expectations before the conflict started. In fact, we
have Fed rate cuts ahead, Trump’s “big, beautiful bill” and further
de-escalation in trade war and so on. These are all positive drivers for
demand.

In
the bigger picture, the market might remain rangebound between the 60
and 90 levels, but the path of least resistance should remain to the upside.

On the daily chart, we can see that the buyers are stepping in around the key support zone at 64.00-65.00 to position for a rally back into the 72.00 resistance. The sellers will want to see the price breaking lower to start targeting the 55.00 level next.

On the 1 hour chart, we can see that the bearish momentum waned right at
the support zone. We will likely keep on consolidating here until we get a bullish or bearish catalyst, but this zone should be key for the market.

This article was written by Giuseppe Dellamotta at www.forexlive.com.