Thursday, July 26, 2018

USOIL - 27 July 2018

  • Dollar
  • Oil

Fundamental Highlights

Despite a strong Dollar, Crude oil managed to stay in the green, showing a great bias to the upside. This steady move to the upside is still driven by concerns over supply constraints. The withdrawal by Saudi Arabia from a key shipping lane after Houthis attacked two oil tankers recently is the most recent catalyst that is supporting oil against the US Dollar.

Technical Analysis

It seems like a move towards the $70 resistance level is set to happen after the price broke the upper trend line to the upside. Momentum is still holding firm with a bias to the upside and will most probably send the price to break above the $70 resistance level to reach the $70.50 and this is the level we will be focusing on.
Support: 67.72 66.88
Resistance: 69.30 70.80

Chart (H1)