We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • RT @GlobalTimesBiz: After more than two weeks of #China’s efforts to resume business activities, only 30 percent of migrant workers has ret…
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here:https://t.co/1oeXWEsJkb https://t.co/c5YVgs5YKD
  • While Sino-US trade jitters are temporarily abating, China-Swedish trade tensions are rising as a part of a political contagion of growing economic hostilities between nations across the world. Get your market update from @ZabelinDimitri here:https://t.co/F1fVoyzoz5 https://t.co/z49NzgZrXd
  • RT @malkudsi: Natural Gas Eyes Pushing Higher as Support Holds - Nat Gas Technical Analysis More details in the link below: https://t.co/HG…
  • As prices dance around on charts, traders are often looking for reasons to explain price movements; however, the underlying source of price movement boils down to the relationship between supply and demand. Learn more about the forces of S&D on forex here: https://t.co/8LfkLXbj2W https://t.co/swcuwAMGAk
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/4adyTWvQ22
  • What are the Market cycles? How are #currencies impacted in these cycles? How can these cycles impact #forextrading patterns? Find out here: https://t.co/ckr2fUOWqW https://t.co/gLJGj1FAOC
  • Central bank independence has several advantages and disadvantages. Find out what they are in-depth with @MartinSEssex here: https://t.co/wVFXbbTxf1 https://t.co/J0MMkVmCUu
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/ZfPUxHWeiG
  • The Mexican economy contracted for the first time in almost 10 years in 2019, but growth is expected to pick up in 2020 according to its finance minister. Get your $USDMXN market update from @HathornSabin here: https://t.co/gupJdU7WYT https://t.co/mMN8LFb5i5
Crude Oil Prices Hit Resistance, Next Move May Be Lower

Crude Oil Prices Hit Resistance, Next Move May Be Lower

2018-05-09 09:30:00
Martin Essex, MSTA, Analyst and Editor
Share:

Crude oil talking points:

- Both Brent and US crude oil prices have hit trendline resistance after Trump’s decision to pull out of the nuclear deal with Iran.

- Now, they look likely to slip back.

Check out the IG Client Sentiment data to help you trade profitably.

And for a longer-term outlook take a look at our Q2 forecast for oil.

Oil prices lifted by Trump’s Iran decision

The prices of both global benchmark Brent crude oil and the US contract have continued to move higher following US President Donald Trump’s decision to withdraw from the international nuclear pact with Iran. However, a pause now seems likely and there is a risk that prices will fall back.

Brent has now established itself above the psychologically important $75/barrel mark and has hit resistance at a trendline joining the highs reached since mid-April. That makes a pullback to the $75 level from just below $77 currently more likely.

Brent Crude Oil Price Chart, Daily Timeframe (Year to Date)

Latest Brent crude oil daiy price chart.

Chart by IG

Similarly, the price of US crude has overcome the $70/barrel mark but has stalled and seems likely to retrace at least some of its recent gains after reaching its highest level since December 2014. While a reduction in oil exports from Iran can now be expected, it is quite likely that any shortfall will be made up by increased US shale output.

US Crude Oil Price Chart, Daily Timeframe (Year to Date)

Latest US crude oil daily price chart.

Chart by IG

Notably, there has been very little response to news from the American Petroleum Institute that US crude inventories fell much further than expected in the week to May 4 – data that might have been expected to boost prices further.

Moreover, there are hopes that European efforts to salvage the nuclear pact could reduce the impact of the US withdrawal from it and that a wider conflict in the Middle East can be avoided.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you: analytical and educational webinars hosted several times per day, trading guides to help you improve your trading performance, and one specifically for those who are new to forex. You can learn how to trade like an expert by reading our guide to the Traits of Successful Traders.

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.