Crude oil once again dipped by -0.43% to settled at 5107 on Iranian supply fears and Chinese economic numbers also pressure seen on MCX as rupee hit a two-month high, propelled by dollar inflows, and as strong China growth data and better than expected German business sentiment improved appetite for riskier assets globally. Dollar weakness generally lifts commodity prices, as it increases their appeal as an alternative asset and makes dollar priced commodities less expensive for holders of other currencies. According to EU sources France is pushing to ramp up enforcement of the EU's proposed Iranian embargo. Euro zone FM are scheduled to meet on Jan 23rd to decide on the embargo in Brussels. Earlier, Iran countered by issuing strong warnings that any disruption of supply in the Strait of Hormuz would result in major worldwide issues. Iran is the world's 4th largest producer of oil hence when embargo rhetoric increases supply concerns lift prices. Meanwhile, govt data indicated that China's economy grew at the slowest pace in over 2 years adding to speculation that Beijing was likely to ease monetary policy to stimulate growth. Other data from Germany indicated the ZEW investor confidence index surged the most on record. Now technically market is trading in the range as RSI for 18days is currently indicating 42.59, where as 50DMA is at 5213.22 and crude is trading below the same and getting support at 5068 and below could see a test of 5029 level, And resistance is now likely to be seen at 5145, a move above could see prices testing 5183.

Trading Ideas:

Crude trading range is 5029-5183.

Crude dropped on MCX on rupee firmness else look firm as tensions between Iran and upbeat economic data look  to support.

France was pushing for faster enforcement of the EU’s proposed embargo on oil imports from the Islamic Republic.

Saudi Arabia can make up for any loss of crude output if sanctions are placed on Iran.