Crude Oil Price: Eight-Day Losing Streak Broken
- Crude Oil Prices Break Eight-Day Losing Streak Above $42 Figure
- Dominant Trend Bias Still Bearish Absent Defined Reversal Signal
Crude oil prices snapped an eight-day losing streak, pausing to consolidate above the $42/barrel figure having broken below January’s lows. The Brent contract is now hovering at the lowest levels since March 2012. The extent to which the slowdown may precede a rebound is unclear however absent the formation of a defined reversal signal. In the interim, the dominant directional bias remains bearish.
Near-termsupport is at 42.36, the 76.4% Fibonacci expansion, with a break below that on a daily closing basis exposing the 100% level at 39.67. Alternatively, a reversal above the 61.8% Fib at 44.03 opens the door for a challenge of the 45.17-38 area, marked by support-turned-resistance at the January 13 low and the 50% expansion.
KEY UPCOMING EVENT RISK:
26 AUG 2015, 12:30 GMT – US Durable Goods Orders (JUL) – Expected: -0.4%, Prev: 3.4%
26 AUG 2015, 14:30 GMT – US DOE Crude Oil Inventories – Expected: n/a, Prev: 2620K
27 AUG 2015, 12:30 GMT – US GDP (Annualized) (2Q S) – Expected: 3.2%, Prev: 2.3%
28 AUG 2015, 05:45 GMT – Swiss GDP (QoQ) (2Q) – Expected: -0.1%, Prev: -0.2%
28 AUG 2015, 05:45 GMT – UK GDP (QoQ) (2Q P) – Expected: 0.7%, Prev: 0.7%
28 AUG 2015, 12:30 GMT – US Core PCE (YoY) (JUL) – Expected: 1.3%, Prev: 1.3%
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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