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
Mixed
Oil - US Crude
Mixed
Wall Street
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
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.03% Gold: -0.29% Silver: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/nj9OGkvt7a
  • The Dollar ($DXY) has cleared both its 50-day SMA and the midpoint of the 2021 range. What has greater pull: its roll as wayward safe haven (vs inverted $SPX) or the recent fade in returns (US 10yr). The 20-day correlation to both approximately ~0.8, strong https://t.co/1dteHRggua
  • US Dollar Index (DXY) trend from last March picking up steam again. February and January lows up next on radar, could take a few weeks. Get your market update from @PaulRobinsonFX here:https://t.co/KCsZINK3KI https://t.co/3EN4Xrxnjn
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.55%, while traders in Germany 30 are at opposite extremes with 80.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9j9ojxURdw
  • RT @ChadPergram: Biden now mtg w/bipartisan/bicameral mbrs about infrastructure. Says they're discussing "how to pay for it." Adds they "ho…
  • $WTI #Crude #Oil Price Outlook: Breakout Eyes Resistance- Bulls at Risk - https://t.co/RuNq3bxxaW https://t.co/784dxJq0m7
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: -0.17% France 40: -0.21% FTSE 100: -0.21% Wall Street: -0.43% US 500: -0.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/TOxQi0CN8k
  • A mildly positive start to the week for the British Pound as it extends last week’s rally. The partial re-opening of the UK economy is giving Sterling a helping hand. Get your $GBPUSD market update from @nickcawley1 here:https://t.co/2XWtWgcHTX https://t.co/iBrDUvrv4c
  • President Biden: Willing to compromise on infrastructure. $DIA $USD
  • Despite a rise in US 10yr Treasury yields to a multi-day high, the US Dollar has remained weaker today. The $DXY is now trading back below the 91.10 level. $USD https://t.co/gQbHLTf5tj
WTI Crude Oil Price Forecast: Basing Pattern Favoring Higher Prices

WTI Crude Oil Price Forecast: Basing Pattern Favoring Higher Prices

Tyler Yell, CMT, Currency Strategist

To receive Tyler’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • Crude Oil Technical Strategy: Setting Up For Breakout
  • Strong Move Higher Off Support Shows Medium-Term Upside
  • Next Big Test Likely at 200-DMA For Long-Term Directional Bias

WTI Crude Oil price continues to show signs of a technical base. A technical base happens over a period and precedes a move higher. From the beginning of the year, crude oil continues to find support or a price floor in the $43 per barrel to $47 per barrel zone. This pattern played out again after the Federal Reserve noted that, “at its next meeting,” economic conditions and data could encourage a rate hike. The validation for the Federal Reserve’s first rate hike since 2006is based on encouraging signs from the economy, which aligned with oils aggressive move off the lows before FOMC. This development aligns nicely with the bullish case that we recently said was aligning with a 2-month low in the Chicago Board Options Exchange Crude Oil Volatility Index.

The Daily crude oil price chart is showing impressive resilience against pushing below $43 per barrel (black horizontal line on chart). Through the sideways price action in September, price consistently bounced off of $43 per barrel region and did so again this week. If we continue to hold above the $43 per barrel price, the case for a retest of the 200-day moving average at $51 per barrel becomes increasingly strong. Additionally, the relative strength Index is bouncing off range lows that could mean we are more likely to see oil price push higher from the stalwart $43 per barrel mark.

Wednesday’s pushhigher in price aligned with an equally strong surge in volume. Currently, the upside is favored, and conditions for a break above the 200-day moving average is strong.Thankfully, WTI is highly correlated to other markets like the US Dollar and USD/CAD, which can help us look for strong directional bias. The clearest sign that a prolonged breakout in US Oil is coming would be another significant breakdown in the US dollar from the March 13 price range again. T.Y.

We hope you enjoyed this short-term Oil Outlook, be sure to sign up for our free oil guide here.

WTI Crude Oil Price Forecast: Basing Pattern Favoring Higher Prices

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

DISCLOSURES