By MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures continued their ascent Thursday as the U.S. dollar weakened.
The commodity last week broke through technical resistance, clearing the $80.50-a-barrel level, and this week broke through $83, a pattern that paves the way for a further climb to $86.50 to $87, said Ashraf Laidi, chief market strategist at CMC Markets.
“The importance of last week’s breakout and this week’s follow-through is highlighted by the break of the all-important 200-week [moving average]. Since the $83 resistance has finally been broken, the road appears open for a retest of the year’s high of $87.10,” Laidi wrote in a note.
Up 51 cents before the U.S. government reported jobless claims fell to 445,000 last week, the front-month trimmed its gains after the data, as the dollar edged slightly higher.
Crude for November delivery (CLX10 84.11, +0.88, +1.06%) lately added 43 cents to stand at $83.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract finished up 41 cents on Wednesday, a five-month high.
Reflecting the greenback’s weakness Thursday, the dollar index (DXY 76.98, -0.40, -0.52%) stood at 77.062 compared to 77.397 in late New York trade on Wednesday. See more on the dollar’s broad-based pullback in currencies trading.
