Crude oil under pressure due to the strong dollar and risk aversion
The strong appreciation of the US dollar, which led to the drop of the EURUSD pair below 1.18 and the weakening of the Antipodes currencies, also leads to a significant weakening of the commodity market. Crude oil is the one of the worst performers. After yesterday's unsuccessful re-entry into the upward trend channel, WTI is trading under heavy pressure today. Currently price is approaching 3 important levels: $ 60 a barrel, 23.6 Fibonacci retracement of the recent upward move, and the 50 period moving average. Should a break below occur, then declines could deepen towards $ 55 a barrel. However, if buyers manage to halt declines, then another impulse towards the lower limit of the upward channel may be launched.
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Seasonality suggests that in the coming days we should observe a potential local low. Source: xStation5
