Trading in 2010 has been limited to a range with resistance being in the 87 area and support being in the 70 area. The market seems to be poised to move up, but range bound markets can take their time trading up to resistance or down to support. Slow economic activity may be the main reason for this market environment, so any breakout of this range would most likely be determined by the same factor. If the world's economy strengthens, oil may rise and if the world's economy continues to slow, oil may fall. It is all about supply and demand.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.