Crude Oil Price Breaks Key Resistance Vs US Dollar

Crude Oil Price Breaks Key Resistance Vs US Dollar

  • – Crude oil price after struggling for a couple of days formed support at $43.75-80 against the US Dollar, and started a recovery.
  • – There was a break above two bearish trend lines with resistance at $44.60 and $45.20 on the hourly chart.
  • – Recently in the US, the API Weekly Crude Oil Stock report was released (July 11, 2017).
  • – According to the report, the Crude Oil Stock decreased by -8.13M compared with the last -5.76M.

 

API Weekly Crude Oil Stock Figure

Recently in the US, the API Weekly Crude Oil Stock report was released (July 11, 2017). The market was positioned for a decline of around 12 million barrels on a weekly basis compared with the last -5.76M.

 

However, the actual result was a bit on the lower side, as there was a decline of 8.13 million barrels. Furthermore, the gasoline inventories were down by more than 800,000 barrels, and Cushing stocks fell by roughly 2 million barrels. Next up is the EIA Crude Oil stockpiles report (Jul 7, 2017), which is expected to post -3.225M.

 

Overall, the result was mixed, but the market sentiment was bullish for Crude oil price above $44.00.

 

Oil Price Technical Analysis

There were declines in oil prices recently below the $46 and $45 support levels against the US Dollar. The price traded as low as $43.75 where buyers emerged, a support base was formed, and later a recovery was initiated.

 

Oil Price Technical Analysis

 

During the upside move, the price was able break the 38.2% Fib retracement level of the last decline from the $46.65 high to $43.75 low and the 100 hourly simple moving average. It sparked a break above two bearish trend lines with resistance at $44.60 and $45.20 on the hourly chart.

 

Later, the price was able to clear the 61.8% Fib retracement level of the last decline from the $46.65 high to $43.75 low at $45.52 as well. These are positive signs and could take the price further higher may be towards $46.50 or $47.00.

 

At the moment, the price is consolidating near the 76.4% Fib retracement level of the last decline from the $46.65 high to $43.75 low. A successful close above $46.00 would trigger an upside towards $46.50.

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