On Thursday (January 29th) during the Asian session, US crude oil traded around $63.53 per barrel. Oil prices climbed to a four-month high on Wednesday, supported by geopolitical tensions. US President Trump publicly warned Iran that if the issues could not be resolved through negotiations, he would take more severe action and urged Iran to return to the negotiating table as soon as possible. This statement quickly triggered market concerns about the stability of Middle Eastern oil supply, and geopolitical risk premiums returned to the oil price pricing system.

Meanwhile, the macroeconomic and financial environment constrained oil prices. US Treasury Secretary Bessenter reiterated the US's continued "strong dollar" policy and denied any intervention in the foreign exchange market, causing the dollar index to rebound. A stronger dollar weakened the attractiveness of dollar-denominated commodities, putting some selling pressure on crude oil at high levels and limiting short-term gains.

From a daily chart perspective, US crude oil remains within a medium-term upward channel, with prices breaking through the upper edge of the previous trading range, indicating a significant increase in bullish momentum. On the daily chart, oil prices have effectively broken above multiple key moving averages, with short-term and medium-term moving averages showing a bullish alignment, indicating a favorable technical pattern for the bulls.

Regarding momentum indicators, the daily RSI remains in the strong zone but has not yet shown extreme overbought signals, suggesting that bullish momentum still dominates. However, the upside potential in the short term may gradually narrow, and increased volatility at higher levels should be anticipated. In summary, today's trading strategy for crude oil is recommended to primarily focus on buying on dips, with selling on rallies as a secondary approach. Short-term resistance levels to watch are 65.5-66.5, while short-term support levels are 63.0-62.0.

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.