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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
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
Bearish
GBP/USD
Bearish
USD/JPY
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
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
  • #Gold prices put in a major breakout last month and, so far, buyers have held the line. But a really big Fed meeting is on the calendar for this week. Can Gold bulls hold? Get your market update from @JStanleyFX here: https://t.co/NGRTSfceOW https://t.co/QkSUORIQE2
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/PHK2sqB1jV
Crude Oil Prices Eye Resistance at $70 as Selling Pressure Builds

Crude Oil Prices Eye Resistance at $70 as Selling Pressure Builds

Margaret Yang, CFA, Strategist

CRUDE OIL PRICE OUTLOOK:

  • Crude oil prices pulled back slightly after hitting a fresh multi-year high of $69.97
  • This week’s EIA crude inventory data and Iran nuclear talks will be in focus
  • WTI may be facing selling pressure near the psychological level of $ 70.00/bbl level

Crude oil prices pulled back slightly during the Asia-Pacific mid-day session, pausing a five-day winning streak as profit-taking kicked in. WTI is hovering below a psychological resistance level at $70.00 and may be hesitant to breach it. Market participants are trying to strike a balance between rising demand from the world’s largest economies and potentially higher output from Iran as well as new Covid-19 outbreaks in the Asia-Pacific region.

Friday’s US nonfarm payroll data underscored a robust recovery in the labor market, with wage growth hitting 2% yoy and the unemployment rate falling to 5.8%. Some 599k jobs were created in May, compared to 278k in the prior month. The energy market may tighten up even further with the summer driving season bolstering demand for fuel.

Across the Pacific, China’s Guangdong province is facing a new wave of Covid-19 infections. Local authorities have tightened controls to curb the spread of the virus, encouraging residents to limit travel. This may cast a shadow over the outlook for energy demand in the world’s second-largest economy. Guangdong is China’s most prominent manufacturing and technology hub, contributing to around 12% of the country’s GDP.

Crude Oil Prices Eye Resistance at $70 as Selling Pressure Builds

Source: Google

Looking ahead, traders will eye this week’s API and EIA crude oil reports for clues about the supply-demand relationship. The EIA reported a larger-than-expected draw in stockpiles last week, reflecting a rapid rise in demand as the economy rebounds.

Meanwhile, nuclear talks between Iran and world powers will resume on June 10th. Given the fact that Iran’s presidential election will take place on 18th, the window for a deal to be struck remains tight. Yet, the ongoing nuclear talks may pave the way to remove export restrictions on the Middle Eastern country and potentially lead to as much as 2 million bpd of additional supply on the global market.

Technically, WTI breached above a key resistance level at 66.50 (the 200% Fibonacci extension) last week and thus opened the door for further upside potential. Prices seems to be facing strong selling pressure at around the $70.00 mark, which may be viewed as an immediate resistance. The overall trend remains bullish-biased as suggested by the upward sloped SMA lines and rising MACD oscillator.

WTI Crude Oil PriceDaily Chart

Crude Oil Prices Eye Resistance at $70 as Selling Pressure Builds

--- Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

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

DISCLOSURES