Crude oil is trading sharply lower and down close to $2 on the day

Crude oil prices have dropped sharply as optimism grows for a potential peace agreement between Israel and Lebanon. Currently, prices are down approximately $2, trading near $69.13. The intraday low reached $69.01, bringing the price close to the 200-hour moving average (MA) (depicted as the green line on the chart).

This MA level is acting as a critical support zone for now. A break below the 200-hour MA would signal a more bearish technical outlook, but so far, buyers have managed to defend this key level.

This article was written by Greg Michalowski at www.forexlive.com.