US withdraws from the Iranian deal, oil initially jumps, then retreats

• US President Trump pulled out the US from the Iranian nuclear deal.
• Dollar bulls fighting against risk-averse sentiment, little changes across the FX board.

Conflicting headlines on Trump's decision ahead of the announcement sent crude oil prices sharply lower, with West Texas Intermediate crude futures plunging to  $67.62 a barrel, after reaching a fresh multi-year high of 70.82 just a day ago. The decline was partially reversed ahead of the announcement with the commodity consolidating just below the 69.00 figure.

Trump finally made public its decision, harshly criticizing the Iranian regime and pulling out the US from the international deal that Obama put in place. Despite officials from the UK, France, Germany and the EU stressed their support for the deal, Trump has now created a new international issue that could spur risk sentiment during the upcoming sessions.

US crude spiked above the 70.00 level, as the decision not only triggered some risk aversion but also hinted decreasing supply. Dollar's broad strength, however, is still present across the board. The commodity is a bit jumpy, but far from bearish, according to technical readings, moreover considering that the intraday slump stalled above 67.10, a strong base set last April.  Some intraday noise could be expected at the time being, with short-term resistances now at 70.00, 70.40, the post-Trump high, and 70.82. Supports are set at the 69.30/40 area, followed by the 68.40 price zone.