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
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
GBP/USD
Bullish
USD/JPY
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
Gold
Bullish
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • RT @next_china: U.S., China chief trade negotiators spoke by phone on Saturday, Xinhua reports https://t.co/dMQtd0g4jY
  • The $AUDUSD and $EURUSD downtrend may prolong as traders counterintuitively buy into their descent. Meanwhile, the USD/CAD uptrend may accelerate on rising net-short bets. Get your market update from @ddubrovskyFX here: https://t.co/dlzJ31kf3f https://t.co/xp8P9MmCgb
  • As we head into next week, Cable is continuing to digest the massive leg higher last month, which at some point soon could mean another surge. Get your $GBPUSD technical analysis from @PaulRobinsonFX here: https://t.co/LJ42YhDe3X https://t.co/5hGwhGBpLB
  • Asia’s vast and growing importance to the world economy is not yet matched by the presence of a currency trading center to rival the established order. Get your update on market drivers in Asia from @DavidCottleFX here: https://t.co/E2hqoRdO7q https://t.co/urMnUCq4fn
  • RT @markets: White-hot pot stocks have flamed out in spectacular fashion https://t.co/3GsVsRyZaZ
  • What is the best time to trade #forex? Find out: https://t.co/M9R46r5ewa #tradingstyle https://t.co/gJ1QDrox67
  • #Gold prices may be given a tailwind from the FOMC minutes and escalating trade war risks if they fuel demand for anti-fiat assets amid expectations of additional Fed easing. Get your $XAUUSD market update from @ZabelinDimitri here: https://t.co/OJ7WUY9W7E $gld https://t.co/kBp3opzptm
  • Why should you set trading goals? How can it help regardless of what your #tradingstyle is? Find out: https://t.co/AYdD7ODlv1 https://t.co/G0ftVurNNN
  • Manning the penalty box today...i hope there aren't too many visitors https://t.co/1y81Li7laL
  • Do you think your #tradingstyle is of a #FOMO trader? Find out how you can turn that to #JOMO? Find out: https://t.co/79Q4pYdVEd https://t.co/S82AOd5AeP
Crude Oil Price Challenges Channel Resistance

Crude Oil Price Challenges Channel Resistance

2019-04-02 12:00:00
Martin Essex, MSTA, Analyst and Editor
Share:

Crude oil price, news and analysis:

  • The price of US crude oil is trading at its highest for nearly five months and is well placed to break higher from a an upward-sloping channel it has traded in throughout 2019 so far.
  • Lower output and signs of economic recovery are both helping lift the price.

Crude oil outlook

The price of US crude oil continues to climb within an upward sloping channel in place since last December and now looks well placed to break to the upside having already touched its highest level since November 8 last year. Any break above the resistance line joining the 2019 higher highs would lead to another leg upwards, while failure would bring it back down to within the channel, which is slowly narrowing.

Crude Oil Price Chart, Daily Timeframe (December 14, 2018 – April 2, 2019)

Latest US crude oil price chart.

Chart by IG (You can click on it for a larger image)

To the upside, a long-term target could be the October 3, 2018 high at $76.81 per barrel while to the downside there is likely to be near-term support at the $60 “round number”.

Russian oil output falls

From a fundamental perspective, the oil price has been helped by news Tuesday that Russian oil output fell by 11.3 million barrels per day in March. In addition, production by members of the Organization of the Petroleum Exporting Countries (OPEC) dropped by 295,000 bpd in March, with Saudi Arabia cutting output to a four-year low, according to a Bloomberg survey.

Elsewhere, the US Government is considering additional sanctions on Iran, a US official told reporters Monday, and Venezuela’s Jose crude export terminal has halted operations due to a lack of electricity supply, according to Reuters.

Signs of economic recovery

On the demand side of the equation, recent data suggest a recovery in the global economy. The Caixin purchasing managers’ index for China’s manufacturing sector in March – released Monday – was higher than expected, as were the UK manufacturing PMI and the US manufacturing index calculated by the Institute for Supply Management (ISM).

More to read:

Eight Surprising Crude Oil Facts Every Trader Should Know

WTI vs Brent: Top 5 Differences Between WTI and Brent Crude Oil

How to Trade Oil: Crude Oil Trading Strategies & Tips

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:

--- 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.