Forex Trading Library

Intraday Market Analysis – Oil breaks lower

0 517

NZDUSD tests support

The New Zealand dollar consolidates as the RBNZ raises its interest rates by 50 basis points. The struggle to clear the supply area around 0.6200 suggests that the sell side still has a firm grip on the direction. The RSI dipped again into the oversold zone and prompted short-term sellers to take some chips off the table. 0.6080 is the next support and its breach could bring the kiwi to the psychological level of 0.6000. On the upside, the bulls will need to lift resistance at 0.6200 before they could turn the mood around.

USOIL fails to rebound

WTI crude tumbles as traders grow wary of a slowdown in demand. A bearish MA cross on the daily chart indicates a deterioration in sentiment after the price failed to hold above the psychological level of 100.00. The latest rebound has come under pressure at 105.00 and struggled to consolidate its gains above 98.00. A bearish breakout attracts more momentum sellers and may trigger a new round of sell-off towards 91.00. An oversold RSI may lead the bears to take profit but 99.00 could see offers from trend followers.

UK 100 awaits breakout

The FTSE 100 weakens as investors remain sensitive to a global downturn. The price action is in a narrowing range between 7020 and 7280 as the bulls strive to hold onto the recent bounce. The upper boundary coincides with the 30-day moving average, making it a key resistance to lift before a sustained recovery could happen. Otherwise, the path of least resistance would be down with 7110 as the first support. A break below 7020 would invalidate the rebound and deepen the correction to March’s low at 6800.

Test your strategy on how oil will fare with Orbex - Open your account now. 

Leave A Reply

Your email address will not be published.