Oil and Natural Gas Technical Analysis After US-EU Deal Boosts Sentiment

WTI crude oil (CL) prices extended gains as geopolitical developments boosted market optimism. Hopes for a stronger global economy increased after the US-EU trade deal avoided a full-blown trade war. This positive sentiment increased expectations for fuel demand and pushed Brent Crude Oil (BCO) and WTI oil prices higher.

A potential extension of the US-China tariff truce added further support. Prolonged trade talks between top officials signal an improvement in relations, which could revive global trade and energy consumption. Traders now see a more constructive backdrop for crude demand.

At the same time, President Trump’s shortened deadline for Russia to end the war in Ukraine raised supply concerns. Markets reacted to the possibility of new sanctions, which could disrupt Russian oil exports. Combined with recent EU actions, this geopolitical pressure added a bullish tone to oil prices.

WTI Crude Oil (CL) Technical Analysis

WTI Oil Daily Chart – Negative Trend

The daily chart for WTI crude oil indicates that the price is consolidating within a range near the long-term support level at $66. This indecision is further reflected by the 50-day SMA trading below the 200-day SMA, indicating a bearish trend.

The price recently faced rejection at the $77 resistance, which aligns with the upper boundary of a triangle pattern, and has since corrected lower. A breakout above $77 is needed to trigger further bullish momentum. Conversely, a break below $64 would confirm additional downside potential, with the next target near the $55 level.

WTI Oil 4-Hour Chart – Uncertain Zone

The 4-hour chart shows that the price is rebounding from strong support near the $64 area. Consolidation between the $64 and $70 levels reflects an uncertain zone, where the price direction remains unclear.

A breakout above $70 would suggest further upside toward the $75 region. Conversely, a break below $64 would open the door to additional downside, targeting the $55 area. The RSI is also consolidating between the 30 and 70 levels, reinforcing the current indecisive market sentiment.

Natural Gas (NG) Technical Analysis

Natural Gas Daily Chart – Consolidation

The daily chart for natural gas (NG) shows a bearish price action following the failure to break above the $4.70 level. The price has now dropped below the 200-day SMA, while the 50-day SMA is crossing below the 200-day SMA, confirming a negative trend.

Natural gas is approaching strong support in the $3.00 to $2.70 region. A break below $2.70 would signal further downside potential. For bullish momentum to resume, a breakout above the $5.00 level is required. Additionally, the RSI has fallen below the 50 level, reinforcing the current bearish outlook.

Natural Gas 4-Hour Chart – Consolidation

The 4-hour chart for natural gas shows that the price is consolidating between the $2.90 and $4.70 levels. A breakout above or below this range is required to determine the next directional move. In the short term, natural gas appears extremely oversold, suggesting a potential rebound from the $3.00 level.

US Dollar Index (DXY) Technical Analysis

US Dollar Daily Chart – Break of 50-Day SMA

The daily chart for the US Dollar Index shows a rebound following the US-EU trade deal, with the dollar gaining strength from capital inflows. The index is now breaking above the 50-day SMA, suggesting potential continuation toward the 100.50 resistance level.

A breakout above 100.50 could drive the index toward the 102 level, while a break below the 96 area would trigger intense bearish pressure and open the path toward the 90 level.

US Dollar 4-Hour Chart – Rebound.

The 4-hour chart for the US Dollar Index shows that the index has broken out of a descending channel. After the breakout, it consolidated above the channel, found support at the former resistance level, and initiated a strong rebound.

The immediate resistance levels are at 99.40 and 100.50. A break above 100.50 would ease bearish pressure and could trigger further upside toward the 102 level.