USDX
105.637

0.21%

XAUUSD
1925.47

0.30%

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89.936

0.71%

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1.06413

0.18%

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1.22342

0.49%

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148.360

0.54%

USNDAQ100
14707.75

0.20%

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      Is an Interim Iran Nuclear Agreement Imminent? One Stone Stirs Up a Thousand Waves

      CommodityPoliticalEconomic
      Summary:

      Iran and the U.S. are close to reaching an interim deal to ease some sanctions on Iran in exchange for a reduction in Iran's uranium enrichment activities, two sources said.

      SELL WTI
      Close Time
      CLOSED

      71.315

      Opening Price

      65.500

      TP

      74.700

      SL

      89.936 +0.634 +0.71%

      2786

      Point

      Profit

      65.500

      TP

      68.529

      Closing Price

      71.315

      Opening Price

      74.700

      SL

      Fundamentals

      According to an Iranian official and an individual familiar with the negotiations, the talks are taking place directly on U.S. soil, marking a notable development in the diplomatic process. However, they said the U.S. side remains reluctant to rejoin the nuclear deal reached in 2015.
      Sources state that substantial progress has been made in the negotiations, and both parties have agreed to a provisional accord. Under the terms of the agreement, Iran would commit to ceasing uranium enrichment activities with purity levels of 60% or above, while continuing to cooperate with the International Atomic Energy Agency for supervision and verification of its nuclear program. In exchange, Tehran would be allowed to export up to 1 million barrels of oil per day and have access to its foreign earnings and other frozen funds.
      Upon hearing the news, the prices of WTI crude oil and Brent crude oil experienced rapid short-term declines. The intraday drop in WTI crude oil widened to 3.63%, currently trading at $69.16 per barrel. WTI, being the most active crude oil futures contract on NYMEX, saw a trading volume of 7,012 contracts within one minute, with a total contract value of $489 million.
      The significant drop in oil prices is expected to help control U.S. Treasury yields as they reflect expectations of decreased demand. Additionally, lower energy prices will contribute to curbing inflation, providing a rationale for the Fed's decision to pause rate hikes.
      WTI: Is an Interim Iran Nuclear Agreement Imminent? One Stone Stirs Up a Thousand Waves_1

      Technical Analysis

      WTI crude oil has been trading sideways within a range after failing to sustain its bullish momentum during the day. However, a major bearish event caused prices to sharply decline from around $72.80. As a result, crude oil prices have returned to the middle of the trading range, indicating bearish pressure.
      After breaking below a key support level, with the 100-day SMA falling below the 200-day SMA, the path of least resistance is confirmed to be downward, potentially opening up further downside potential. Therefore, going short at highs is recommended.

      Trading Recommendations

      Trading Direction: Short
      Entry Price: $72.10
      Target Price: $65.50
      Stop Loss: $74.70
      Valid Until: 2023-06-22 23:55:00
      Support: $69.92, $68.05, $67.09
      Resistance: $72.39, $73.80, $74.33
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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      Eva Chen

      Analyst

      Master of Economics, 8 years in the financial industry, CFA holder, joined HSBC (Hong Kong) Bank in 2013 after graduating from the University of California, USA in the Investment Research and Markets Department. With years of financial market experience and trading experience, having provided excellent investment advice to many brokerages, entity derivatives importers and clients in Greater China.

      Ranking

      3

      Articles

      735

      Win Rate

      69.00%

      P/L Ratio

      0.50

      Focus on

      XAUUSD, WTI, USDCAD

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