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Oil continue uptrend with Dollar , waiting FOMC on Friday

Oil prices managed to reverse the gains it made snapping eight days of gains in what was the longest unbroken rally in more than five years as many traders closed positions ahead of the U.S. Independence Day holiday.

 

Oil slipped lower as traders took profits in the wake of the longest stretch of daily gains since February 2012 after data last week indicating that U.S. oil output is moderating.

 

Energy services firm Baker Hughes on Friday reported that the number of active U.S. rigs drilling for oil fell by two, the first decline in six months.

 

Despite the drop in drilling the total rig count was still more than double the 341 rigs in the same week a year ago the firm said.

 

The report came after figures from the U.S. Energy Information Administration showing that output fell by 24,000 barrels per day in April, the first drop this year.

 

Oil prices are positioned to head higher in the second half, analysts said on Monday, after crude’s dismal performance in the first six months of 2017 caught many commodity watchers flat-footed.

 

The majority of analysts agree that much of the recent trading has been based on the technical indicators or buying and selling based on crude’s moves above and below certain price levels.

 

Oil prices can still move lower, but there is key technical support for oil futures between $37 and $41 a barrel, according to Stephen Schork, editor of The Schork Report. Oil prices rose toward $47 a barrel on Monday.

 

It now up to OPEC to act, if they keep the oil supply relatively constant, demand could catch up, which could, in turn, lead to a draw down in inventories

 

Spot gold recovered as North Korea tested-fired newly developed a newly developed intercontinental ballistic missile renewing demand for the safe haven.

 

Should a trend reversal occur, Gold could climb toward the 121227.18 and take out the resistance level around the 1231.05.

 

Important levels to watch out for:

 

Resistance Points: 1227.18,1231.05 and 1239.38.

 

Support Points: 1218.85, 1214.39 and 1206.06.

 

EURUSD – Third day of downward movement by the EURUSD after it reached a high of 1.1450. The pair is currently sitting at an important support of 1.1350 which seems to be holding its own against the pair.

GBPUSD – Brexit does not necessarily mean Brexit. That is the notion that has been going around with the softer approach to Brexit by the U.K. Government. The GBP has dropped for the second day as it tests the 1.2930, a move lower will indicate bearish pressure is high.

USDJPY – In a spontaneous drop, the pair parted half the gains it made yesterday on the back of North Korea testing a Ballistic Missile which forced the pair lower. Since then, the pair rose back up towards 113.20 and seems to be forming a hammer which shows continuation.

USDCAD – A clear consolidation is forming on the pair after a massive drop in the exchange price. The pair currently trades around 1.2975 as the lack of liquidity from yesterday and today are weighing on the volume and liquidity in the pair.

AUDUSD – RBA’s clearly neutral stance on monetary policy and the dovish statement that followed weighed heavily on the pair which seems to have pared the gains the pair has posted last week.

 

Dow Jones – The Actual Index is closed for the index, however, the future on the index is open at least for the time being with it being U.S. Independence Day.

 

 

Now is your chance to make a profit!

 

Open an account here!

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