On Tuesday (February 3rd) in early Asian trading, US crude oil traded around $62.23 per barrel. Oil prices fell more than 5% on Monday after US President Trump stated that Iran was having "serious talks" with Washington, suggesting a slight easing of tensions and alleviating supply concerns.

Trump has recently made multiple threats that the US might intervene if Iran rejects the nuclear agreement or continues to suppress protesters. These threats supported oil prices in January. A stronger dollar also made dollar-denominated crude oil more expensive for holders of other currencies. Meanwhile, forecasts of warmer weather in the US led to a sharp drop in diesel futures prices, further dragging down oil prices.

From a daily chart perspective, crude oil prices showed a pattern of rising and then falling back at high levels, with the body of the price action gradually shortening, reflecting increased divergence between bulls and bears, and the trend shifting from a one-sided upward movement to a correction. Prices are currently trading below short-term moving averages, and the short-term trend has shifted from slightly bullish to slightly bearish, indicating a significant decrease in bullish momentum. Structurally, the current market situation more closely resembles a technical pullback after an upward move. The previously formed upward channel has been effectively broken, and the price center of gravity has begun to shift downwards, indicating that the market is reassessing its medium-term valuation range.

Crude oil's short-term (1-hour) price action failed to reach new highs, turning downwards and breaking below the moving average system, indicating a shift in the short-term trend. The MACD indicator's fast and slow lines have crossed below the zero line, suggesting that bearish momentum is dominant. It is expected that crude oil will continue its downward correction throughout the day. In summary, the recommended trading strategy for crude oil today is primarily to sell on rallies, with buying on dips as a secondary approach. Short-term resistance levels to watch are 63.7-64.7, and short-term support levels are 60.5-59.5.

Disclaimer: The article is contributed by the market analyst from Bitop market observation team. The content is solely for personal opinions and sharing. The analysis is time-sensitive and provided for reference and discussion only. It does not constitute any investment advice. The market is risky, so investing should be done cautiously.