Crude Oil Price Recovery Could Be Capped Vs US Dollar

Crude Oil Price Recovery Could Be Capped Vs US Dollar

  • – Crude oil price recovered after trading below the $63.50 against the US Dollar.
  • – There are two bearish trend lines formed with resistance at $65.10 and $65.65 on the hourly chart.
  • – Recently in the US, the API Weekly Crude Oil Stock report for the week ending June 15, 2018 was released.
  • – As per the report, there was a decline in the crude oil inventories by 3.016 million barrels.

 

API Weekly Crude Oil Stock

Recently in the US, the API Weekly Crude Oil Stock report for the week ending June 15, 2018 was released. The market was positioned for a drop in the crude oil inventories by roughly 1.20 million barrels.

 

However, the actual result was better as there was a decline in the crude oil inventories by 3.016 million barrels. It was a positive outcome and had an upside impact on oil prices.

 

The price moved above the $64.50 level, but it seems like it is approaching a couple of important hurdles below the $65.60 level.

 

Oil Price Technical Analysis

There was a sharp drop in crude oil price from well above $66.00 against the US Dollar. The price declined heavily and broke the $65.00 and $64.00 support levels. There was also a close below the $65.00 level and the 100 hourly simple moving average.

 

Oil Price Technical Analysis

 

The price traded as low as $63.35 before a fresh recovery was initiated. The price jumped above the $64.50 resistance and the 50% Fib retracement level of the last decline from the $67.00 high to $63.35 low.

 

However, there are many barriers above the $65.00 level. There are two bearish trend lines formed with resistance at $65.10 and $65.65 on the hourly chart. Oil price was already rejected once from $65.60 and the 61.8% Fib retracement level of the last decline from the $67.00 high to $63.35 low.

 

Therefore, if the price continues to move higher, it could face a strong barrier near the $65.50-60 zone. As long as it the price is below this, it could move down once again below the $64.50 level. On the flip side, above $65.60, the price may move towards the $66.00 level in the near term.


Also published on Medium.

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