Crude Oil Price To Continue Higher Vs US Dollar
- – Crude oil price made a nice upside move recently and traded above $51.50 against the US Dollar.
- – There is a crucial bearish trend line forming with resistance near $52.40 on the hourly chart.
- – Recently in China, the hosing price index for Sep 2017 was released by the National Bureau of Statistics.
- – The outcome was below the forecast of +8%, as there was an increase of 6.3% in the index.
China’s Hosing Price Index
Recently in China, the hosing price index for Sep 2017 was released by the National Bureau of Statistics. The market was positioned for an increase of 8% compared with the last increase of 8.3%.
However, the actual result was below the forecast of +8%, as there was an increase of 6.3% in the index. It had a slight negative impact on the market sentiment. Moreover, the recent Canada’s Consumer Price Index (CPI) for Sep 2017 posted a rise of 0.2% compared with the previous month, which was in line with the forecast.
It seems like crude oil price remains supported on the downside and it might look to break the $52.40-50 resistance for more gains.
Oil Price Technical Analysis
There was a minor dip in oil prices this past week towards the $51.00 support against the US Dollar. The price traded as low as $50.90 and later started an upside correction. It moved above the 23.6% Fib retracement level of the last decline from the $52.54 high to $50.90 low.
The upside move was strong since the price was able to break the $51.50 resistance and the 100 hourly simple moving average. There was even a close above the 50% Fib retracement level of the last decline from the $52.54 high to $50.90 low, which is a positive sign.
On the upside, there is a crucial bearish trend line forming with resistance near $52.40 on the hourly chart. At present, the price is trading near the 76.4% Fib retracement level of the last decline from the $52.54 high to $50.90 low.
Therefore, there is a chance of a minor dip before the price makes an attempt to break the $52.40-50 resistance in the near term. Buying dips can be opted as long as the price is above $52.00 and the 100 hourly SMA.
