News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
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
More View more
Real Time News
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/9SC4I69oi7
  • The European Central Bank will consider it a job well done if there is no movement in EUR/USD or the Euro crosses before, during or after Thursday’s policy announcements by its Governing Council. Get your weekly Euro forecast from @MartinSEssex here: https://t.co/TCTonpE9Ik https://t.co/qq6TTaPtLE
  • Further your forex knowledge and gain insights from our expert analysts @ddubrovskyFX and @FxWestwater on JPY with our free Q4 market analysis guide, available for free today.https://t.co/mzeJ5x73N3 https://t.co/zll2sxL4ja
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency: https://t.co/EfWEACQ6Cz https://t.co/Js6SNdNj9y
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/kIIBffEMi7 https://t.co/MqFQ9uS26R
  • Further your forex knowledge and gain insights from our expert analyst @ @MartinSEssex and @DColman on EUR with our free Q4 market analysis guide, available for free today.https://t.co/YwV249fojQ #Dailyfxguides https://t.co/BvfOW4QwZ9
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/6cn6OK6M7w
  • RT @Stephanie_Link: 84% of $SPX companies have beaten EPS estimates to date for Q3, which is tied for the 3rd highest percentage since 2008…
  • What is #NFP and how can you trade it? Find out: https://t.co/XJWS04IF9j https://t.co/iV9lPzPDtc
  • What does it mean when one candle fully engulfs the previous in its price action? The bullish engulfing candle is one of the forex market?€?s most clear-cut price action signals. Figure out how to identify this pattern here: https://t.co/Yg6ecRZZNr https://t.co/3J0xXp4axT
Crude Oil Price Soars to 7-Week High on Fed & Supply Shock

Crude Oil Price Soars to 7-Week High on Fed & Supply Shock

Rich Dvorak, Analyst

CRUDE OIL PRICE – TALKING POINTS

  • Crude oil prices edged up noticeably throughout Wednesday’s trading session with the commodity touching its highest level since May 23
  • Oil prices are benefiting from the return of risk appetite driven by dovish Fed prospects
  • Crude is also climbing owing to supply shock fears surrounding adverse weather in the Gulf of Mexico and lingering tension with Iran
  • Download the free Q3 Crude Oil Forecast from DailyFX for comprehensive fundamental and technical insight on XAUUSD

Oil prices soared well over 3% on Wednesday to close at $60.23/bbl. Bullish crude oil price action came in response to a mix of fundamental developments which look to boost demand prospects and further curb supplies. The steep ascent over the last 24 hours was initially sparked by API crude oil inventory data released yesterday which revealed a drawdown of -8.129 million barrels.

CRUDE OIL PRICE CHART: 15-MINUTE TIME FRAME (JULY 09, 2019 TO JULY 10, 2019)

Crude oil price chart

Upward momentum continued when Fed Chair Jerome Powell delivered his prepared remarks for his congressional testimony. Powell reiterated the Fed’s dovish position and that the central bank stands ready to “act as appropriate to sustain US economic growth.” The potential that an ‘insurance’ rate cut by the Fed will help keep the US economy and global GDP growth on track is likely boosting oil demand prospects and crude oil prices.

CRUDE OIL PRICE CHART: DAILY TIME FRAME (DECEMBER 10, 2018 TO JULY 10, 2019)

Crude oil price technical analysis

Upside in crude oil was subsequently exacerbated by comments from US President Trump who stated that sanctions on Iran – the world’s 7th largest oil producer– will soon be increased substantially. Furthermore, speculation over the adverse impact on crude oil production in the Gulf of Mexico is likely contributing to the push higher in crude oil prices as commodity traders weigh the threat that brewing Hurricane Barry poses to US oil infrastructure on the shores of New Orleans.

This push higher in crude oil prices today appears to have broken bearish downtrend technical resistance from the string of lower highs since oil topped out around $66.00/bbl back in April. Crude oil could run into another level of technical resistance, however, near the 78.6% Fibonacci retracement level of the commodity’s bullish ascent from December 2018 to April 2019. Meanwhile, retail traders are growing less optimistic over crude oil price action as suggested by IG Client Sentiment data.

CRUDE OIL PRICE CHART AND CLIENT POSITIONING OVERLAY: DAILY TIME FRAME (JANUARY 11, 2019 TO JULY 10, 2019)

Crude oil price chart and oil client positioning

According to retail trader positioning data provided by IG, 56.4% of traders are net-long with the ratio of traders long to short at 1.29. Yet, the number of traders net-long is 16.5% lower relative to last week while the number of traders net-short is 13.13% higher compared to last week.

-- Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES