Oil bears pounce on initial data

29 December, 2016

Oil markets continued to be a weird mix as of late as the market expects -2.06M barrels from tomorrows reading, however private inventory data readings are initially suggesting there is the biggest build up of crude oil in over 6 weeks, leading to many rethinking tomorrows prediction. So far oil has slipped slightly as a result and this was on the back of a weakening in the USD. Predictions so far have been that OPEC will look to impose its tightening in order to bolster the market, but if the market is still showing signs of a build up it may require further action in the future to up the price of oil - something that most members will not be looking forward to the idea of.

Oil on the charts has been very bullish in recent weeks on the back of all the noise from OPEC and the market certainly believes prices will increase in the long run. So far the level that many are looking to beat and is acting as stiff resistance in the market is at 54.96 and looks likely to face further technical pressure unless there are any major fundamental announcements. Beyond this level the next leg could be found at 60.12 which also acts as a major psychological level for the most part. Any movements lower are likely to touch the 20 day moving average and in this case I would anticipate it to act as dynamic support as we have previously seen.

NZDUSD traders will be watching the events of today after it appeared that the NZDUSD was able to find some footing after recent bearish movements in the previous week. The surge today looked quite strong, but it was all on the back of USD selling and had little to do with the current economic outlook for New Zealand for the most part. While I would anticipate the NZ economy bouncing back, the stage is certainly focused on the US economy for the most part and any bullish movements should be treated as something not to focus to intently on. Commodity prices for the NZ economy continue to remain subdued and it seems this won't change in the short term just yet, but they will eventually recover and aid the current economy.

Technically speaking the NZDUSD is always a tricky one to play with, but the rise upwards towards resistance at 0.6948 is looking quite bullish in the short term. However, it would seem unlikely that it could push through psychological barrier of 0.70 which has always been a big ask for traders. Further legs back down are likely to find strong support at 0.6874, but the market is pricing in further moves lower I feel, but it could take further strong US data to really get it pushing towards the 0.65 mark.

Source link  
Yuan approaches critical level

The trading week kicked off with a panicked sell-off in Chinese equities which simply expresses growing fears in financial markets. Rising U.S...

Gold shines on Italy turmoil

Gold is poised to remain in the limelight this week after aggressively appreciating roughly $18 in a three-hour window. The yellow metal surprised markets...

Fed hike failed to satisfy dollar bulls

Despite U.S. President Donald Trump's dissatisfaction with the Fed's monetary policy tightening measures, the Fed as expected raised interest...

Trump makes mark at United Nations

Although a variety of headlines are circulating following the speech from President Trump at the United Nations, financial market movements are slightly...

Dollar path hinges on Fed dot plot

The U.S. Dollar has enjoyed a robust rally over the past seven months. An economy growing above potential rate, fiscal stimulus, low unemployment...

Risk aversion returns as tariffs take effect

Politics and trade tensions are expected to be the key market drivers this week. President Trump's tariffs on $200 billion worth of Chinese goods...

Investors await China's response

U.S. President Trump moved forward with imposing 10% tariffs on $200 billion of Chinese imports effective next week. Trump's move has obviously...

EM Currencies slide as Dollar appreciates

Emerging market currencies have been treated without mercy by a broadly stronger Dollar, yet again. The Dollar Index appreciated to its highest level this year...

Pound crumbles as UK inflation fails to rise

Repeated signs of easing inflationary pressures in the United Kingdom could plant a seed of doubt among investors about whether the Bank...

In the past 24 hours Bitcoin has lost -0.98% and reached $6541.061325. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -7.87% and is now at $208.012957199. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%