Oil dips on API figures

15 June, 2016

The oil market has had a bit of bump this evening as the recent API showed a slight build up in inventory which is currently against market expectations for tomorrows actual crude oil inventory data which is expected to be -2.29M. The build up of 1.52M barrels however is not something that should weigh heavily on traders' minds given that API and the official reading tend to be slightly off from each other and not always a true reflection of energy reserves in the US economy. While crude is feeling pressure on the charts the USD is not helping things either as it has strengthened over the last day leading to a slow drift lower for oil as a whole; and on top of this we have the Brexit fears which are impacting economic figures in the euro-zone and the UK. It's likely that a Brexit would have an effect on the global economy, and would likely lead to a drop in oil consumption due to business uncertainty, however it would not be a long term blip at all.

Looking at the technical plays on the oil chart oil prices are looking to push support at 47.84, this is leading to markets looking to pull back slightly on the H1 to test the bears at present. However, with a stronger USD this might be a bit of an ask at the moment. Any further drops looking to pressure support are likely to find strong support at 47.51 as the next level down, followed by 46.74. While it does look like a bearish market the current support band between 47.84 and 47.51 is quite strong and the market has pulled back numerous times for this level. A break out below this level will likely run for some time and traders will look to position themselves wisely here.

NZDUSD traders will be interested in the recent home sales data which came out of NZ which showed a decrease over the previous reading of 18.4% down to 13.6%. This comes on the back of recent pressure from the Reserve Bank of New Zealand to reign in the property market which has been overheating in the face of weak inflation and a sluggish economy. It looks to be working, but markets are taking this as a sign that the good times are indeed slowing down and the NZD has taken a drop as a result - especially with the current strengthening of the USD at present.

The NZDUSD has been somewhat bearish since the start of this week and traders have been doubling down when it comes to pressure at present. The market looks to be extending lower to support at 0.6916 and it could certainly be a case of more pressure added if we see a push through this level which is sustained, with the next level below this coming in at 0.6893. 


Source link  
USD and Oil in focus

The USD lifted again against all majors, as US retail sales m/m came in strong at 0.5%, in line with expectations. At the same time the previous month was...

Investors in cautious mode

Global equity and foreign exchange markets were relatively quiet on Wednesday as the U.S. financial markets were closed in observance of Independence Day...

Recession fears rise as trade war heats up

It has been an interesting first half for 2018. Economic fundamentals and politics took center stage as both fought for market influence.


Relentless rout for emerging currencies

While the speed of selling has slowed down compared to the early part of the week, emerging market currencies have continued to show...

Yuan weakness accelerates

Concerns over the possibility of an upcoming trade war are expected to remain front and center of investor focus once again today. Although the trading atmosphere is not quite as negative...

Lira jumps higher on Erdogan victory

All eyes are on the Turkish Lira this morning with the currency rallying sharply in early trade today, following the news that Turkish President Recep Tayyip Erdogan...


Trade war fears ease, but for how long

Global stocks have bounced back to life after China's central bank calmed markets by urging investors to stay calm and rational. While this move by...

Oil slips further ahead of OPEC meeting

Oil markets have suffered another blow today as US oil inventories showed an increase of 2.07M barrels (-2.1M exp), while at the same time US gasoline...

Trade war fears to dominate market

After imposing tariffs on steel and aluminum imports on its closest allies, the U.S. will be facing enormous criticism at the G7 summit on Friday in Quebec...


In the past 24 hours Bitcoin has lost -1.05% and reached $7343.92. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 6.06% and is now at $460.593. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: