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
GBP/USD
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
More View more
Real Time News
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
  • 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/hqW38VawJl
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open https://t.co/BKCLJTDk9h
Crude Oil Price Action Weak, Has Room to Drop

Crude Oil Price Action Weak, Has Room to Drop

Paul Robinson, Strategist

Crude Oil Price Highlights:

  • Crude oil bounce has been weak, wedge could be forming
  • WTI has room to 46 area before long-term trend-lines
  • Brent contract has further to fall before finding similar support

For fundamental and technical forecasts, trade ideas, and educational guides, check out the DailyFX Trading Guides page.

Crude oil bounce has been weak, wedge could be forming

Crude oil continues to be strikingly weak as its relationship to stocks and the ‘risk trade’ has become increasingly untethered. The initial bounce off the June low held some power, but the past couple of sessions after retesting the monthly low the bounce has been smaller.

A turn down from right around here (also the trend-line from last month) will help complete a descending wedge pattern. Given the general trend and nature of the pattern (lower high, flat bottom structure) it is anticipated that a downside break will develop.

A sustained decline through $50.54 should have the WTI contract picking up downside momentum again. The height of the wedge implies about a $4 drop, or about $46. This aligns with the weekly chart, where a confluence of support runs over from 2016.

A failure to roll down and break the $50.54 level will keep the outlook neutral, while some work on the upside will be needed to turn the trading bias bullish. The wedge could develop further and break to the top-side but risk of the breakout failing will be elevated given the generally weak backdrop in place.

WTI Crude Oil Weekly Chart (lines from 2016)

Crude Oil Price Action Weak, Has Room to Drop

WTI Crude Oil 4-hr Chart (weakening price action)

Crude Oil Price Action Weak, Has Room to Drop

Brent contract has further to fall before finding similar support

The Brent chart looks similar to WTI, of course, but has further to go before similar support is met. The same trend-lines from 2016 arrive in the vicinity of $55/52. A sustained drop below $60.28 is needed to give sellers traction again.

Brent Crude Weekly Chart (2016 lines down below)

Crude Oil Price Action Weak, Has Room to Drop

Brent Crude Oil 4-hr Chart (wedge could be building)

Crude Oil Price Action Weak, Has Room to Drop

Forex & CFD Trader Resources

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES