Will the oil downward trend stop soon? Weak chances

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downward trend

For sure the most interesting subject these days is the evolution of oil. We noticed how the WTI price was stoutly attracted by the round level of 50 dollars per barrel and even breaking it down to 47.50 dollars. Technically speaking, there are no significant correction signals highlighted in the chart so we have to be attentive to the retesting of the 47 and 46 support levels. Even more interesting is to watch the Brent oil evolution, which seems to soon retest the 50 dollars support level, trying to stabilize under the round level.

The narrowing of the spread between the WTI and Brent oil is also fundamentally backed by the rumors about the United States wanting to increase the production, thus diminishing the imports of oil and the OPEC group which resist to the lower price of oil, keeping its production at normal levels.

The narrowing of the spread between the WTI and Brent oil is also fundamentally backed by the rumors about the United States wanting to increase the production, thus diminishing the imports of oil and the OPEC group which resist to the lower price of oil, keeping its production at normal levels.

The narrowing of the spread between the WTI and Brent oil is also fundamentally backed by the rumors about the United States wanting to increase the production, thus diminishing the imports of oil and the OPEC group which resist to the lower price of oil, keeping its production at normal levels.

The euro currency is clearly defeated because of the financial problems of the Euro zone and the political matters in Greece. We may expect the euro to follow a downward trend at least for the next two quarters. In the long term we may consider the 1.1200 support level, but in the short term we may see the EURUSD approaching the 1.1810 zone. The most important events to be watched over the next two weeks in the Europe are on the 22 of January – ECB Press Conference and on 25 of January – Greek Parliamentary Election.

The American dollar may gain some ground today as the FOMC meeting today is expected to confirm the interest rate increase by the end of the year. Also, the ADP Non-Farm Employment Change expected to be published today up to 227K and the Non-Farm Employment Change which will be reported on the 9 of January will influence the decision of the FOMC members concerning the monetary policy. This episode of appreciation of the US dollar may bring back the negative pressure on the yen and the Swiss franc which may lose some ground.

The euro currency is clearly defeated because of the financial problems of the Euro zone and the political matters in Greece. We may expect the euro to follow a downward trend at least for the next two quarters. In the long term we may consider the 1.1200 support level, but in the short term we may see the EURUSD approaching the 1.1810 zone. The most important events to be watched over the next two weeks in the Europe are on the 22nd of January – ECB Press Conference and on 25th of January – Greek Parliamentary Election.

The American dollar may gain some ground today as the FOMC meeting today is expected to confirm the interest rate increase by the end of the year. Also, the ADP Non-Farm Employment Change expected to be published today up to 227K and the Non-Farm Employment Change which will be reported on the 9 of January will influence the decision of the FOMC members concerning the monetary policy. This episode of appreciation of the US dollar may bring back the negative pressure on the yen and the Swiss franc which may lose some ground.

The American dollar may gain some ground today as the FOMC meeting today is expected to confirm the interest rate increase by the end of the year. Also, the ADP Non-Farm Employment Change expected to be published today up to 227K and the Non-Farm Employment Change which will be reported on the 9th of January will influence the decision of the FOMC members concerning the monetary policy. This episode of appreciation of the US dollar may bring back the negative pressure on the yen and the Swiss franc which may lose some ground.

The pound sterling continues to arouse concern as the PMI services was reported down to 55.8 points, the PMI construction was also published down to 57.6 points, the European problems are also influencing the British economy and tomorrow we have to carefully watch the official bank rate decision. The expectations point towards keeping the actual level of the interest rate, but the MPC Rate Statement may betray a negative sentiment concerning the economic evolution for 2015. The GBPUSD is down to 1.5140, the chart showing a strong descending trend which may continue. In the short term we may be attentive to a correction up to 1.5200 before the 1.5100 support level is reached.

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