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.

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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Japanese Gov't recommends 2-week extension of Tokyo virus emergency - BBG $JPY
  • While the rise in yields is weighing on risk trends, carry trade didn't seem to take the hit. In fact, the charge in US yields seems to have far outweighed the de-risking from $USDJPY's perspective: https://t.co/KpOpgopOep
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: -0.09% 🇬🇧GBP: -0.40% 🇦🇺AUD: -0.69% 🇳🇿NZD: -0.81% 🇯🇵JPY: -0.90% 🇨🇭CHF: -0.97% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8Tvotykz9y
  • Commodities Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.33% Gold: -0.69% Silver: -2.64% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/faJTbi16VK
  • AUD/USD now off daily lows, remains much weaker as a result of broad US Dollar strength $AUDUSD https://t.co/OkdKWbepAR
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 93.13%, while traders in GBP/JPY are at opposite extremes with 70.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/XXOjh5LmaB
  • Silver price action stalls between Moving Averages. Platinum prices currently confined by Fibonacci Support. Get your market update from @Tams707 here:https://t.co/Nbl8FDmfps https://t.co/VyuZzP8w2q
  • US Markets at the Close $NDX 12464.0 -1.73% $SPX 3768.49 -1.34% $DJI 30924.14 -1.11%
  • USD/JPY stronger during trade, now pushing towards 108 level $USDJPY https://t.co/GemouFGvHF
  • Indices Update: As of 21:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.02% US 500: -0.03% Germany 30: -0.52% FTSE 100: -0.53% France 40: -0.71% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/jsQ36v1JJy
Crude Oil Price Clings to Support as Demand Outlook Dwindles

Crude Oil Price Clings to Support as Demand Outlook Dwindles

Peter Hanks, Strategist

Crude Oil Price Forecast:

Crude Oil Price Clings to Support as Demand Outlook Dwindles

Crude oil has suffered a string of declines to start the year and stands on the threshold of bear market territory as a result. While coronavirus concerns have finally started to eat away at other growth-sensitive assets like the Nasdaq and Dow Jones, crude oil was one of the earlier casualties which could allow it to have a more measured response to the recent sessions of risk aversion. Further still, traders may be hesitant to commit to one direction or another ahead of the upcoming OPEC meeting on March 5 which may allow crude to consolidate further.

With the fundamental factors remain in constant flux, technical support around $50 is lent notable influence. Doubling as a psychological level, the line has been able to stall various declines in the past and helped buoy price throughout early February. With that said, slowing global travel and economic activity have dealt an undeniable blow to crude oil demand and if OPEC cannot agree to reduce supply, the commodity may continue lower regardless of the technical level.

Crude Oil Price Chart: Daily Time Frame (January 2019 – February 2020)

crude oil price chart

Similarly, crude oil may enjoy gains if coronavirus concerns are remedied sooner than anticipated or the market experiences a broader resurgence in risk appetite – one that would have to be founded on a fundamental improvement elsewhere. Consequently, it seems crude oil remains vulnerable and attempts to push price higher may be short lived until a bullish catalyst is delivered.

Oil Forecast
Oil Forecast
Recommended by Peter Hanks
Get Your Free Oil Forecast
Get My Guide

To that end, the recent swing high around $54.67 will offer initial resistance should crude oil begin to climb. A break above this level would be an encouraging development from a technical perspective but another cautionary warning is offered by IG Client Sentiment Data which reveals retail traders are overwhelmingly net-long crude oil.

Oil - US Crude BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -34% 31% 0%
Weekly -22% 14% 0%
What does it mean for price action?
Get My Guide

Since we typically take a contrarian view to IGCS, the data may suggest price is headed lower still. In the meantime, follow @PeterHanksFX on Twitter for updates.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

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

DISCLOSURES