FUNDAMENTALOVERVIEWThe surprising US-Iran breakthrough last Thursday triggered a selloff in crudeoil as traders started to unwind the hedges and positioned for lower prices onexpectations of resumption of normal traffic in the Strait of Hormuz in thecoming months. As mentioned last week, the downside was more likely as the upside wascapped by the risk of Fed tightening into a negative supply shock andpotentially triggering a recession or Trump caving in and making a deal. We got the second scenario which is certainly better for the global economy.The natural target now should be the pre-war levels around the 70.00 handle,all else being equal. The risks in the short-term is that things between the US and Iran break downand the Strait of Hormuz remains closed, so traders will have to keep a close eyeon that. CRUDE OILTECHNICAL ANALYSIS – DAILY TIMEFRAMEOn the daily chart, we cansee that crude is approaching the key 78.00 support zone. This is where we canexpect the buyers to step in with a defined risk below the support to positionfor a rally back into the upper bound of the range around the 115.00 level. Thesellers, on the other hand, will look for a break to increase the bearish betsinto the pre-war gap around the 68.00 handle. CRUDE OIL TECHNICALANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we havea downward trendline defining the bearish momentum. If we were to get apullback into the trendline, we can expect the sellers to lean on it with adefined risk above it to keep pushing into new lows. The buyers, on the otherhand, will look for a break to increase the bullish bets into new highs.CRUDE OIL TECHNICALANALYSIS – 1 HOUR TIMEFRAMEOn the 1 hour chart, wehave another minor trendline defining the bearish momentum on this timeframe. Ifwe get a pullback into the gap, we can expect the sellers to step in to targeta break below the 78.00 support and extend the drop into the 68.00 handle next.The buyers, on the other hand, will look for a break higher to increase thebullish bets into the next trendline around the 90.00 handle. The red linesdefine the average daily range for today. UPCOMING CATALYSTSTomorrow, we have the FOMCrate decision. On Thursday, we get the latest US Jobless Claims figures. OnFriday, the US-Iran “peace deal” is expected to be signed. This article was written by Giuseppe Dellamotta at investinglive.com.