Oil is at 13-month high due to deep freeze in Texas

Latest news

• Stocks are rallying up further amid the ongoing global recovery. SP 500 set a record high at 3956, Nasdaq at 13884. Japans Nikkei 225 rose above 30000.
• Oil prices surged to 13-month highs as oil production stopped in Texas because of extremely cold weather. Besides, such a deep freeze boosted power demand. Rising oil prices pushed up commodity-sensitive currencies such as the Canadian dollar.
• Ten-year Treasury yields soared above 1.24%, marking the highest level in almost a year. It may press gold down.
• Bitcoin skyrocketed to anotherrecord, approaching the milestone of $50000.
• Continued monetary stimulus and bursts of fiscal support maintain a strong foundation for risk assets, compensating for the slower than expected vaccine rollout, said Principal Global Investors.

Technical analysis

EUR/USD has been trading back and forth just below the 50-day moving average at 1.2150. If it manages to break it, the way up to the high of January 22 at 1.2190 will be open. On the flip side, the move below the low of February 12 at 1.2090 will drive the pair down to the next support of 1.2030.

EUR/USD  chart

GBP/USD jumped to the psychological mark of 1.3950 but failed to cross it. If it breaks it on the second try, the doors towards the next resistance of 1.4000 will be open. Support levels are at yesterdays low of 1.3900 and at the low of February 12 at 1.3840.

GBP/USD chart

USD/JPY has soared to the 200-day moving average of 105.60. If it manages to break it, the way up to Novembers high of 106.00 will be open. On the flip side, if it fails to break it again, it may drop to the support of 105.00.

USD/JPY chart

WTI oil is trading just above the $60.00 level. The way up to yesterdays high of $61.00 is clear. Support levels are $59.00 and $57.50. Current oil CFDs: WTI-21H expires on February 19, WTI-21J expires on March 19.