FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
HFM information and reviews
HFM
89%

Oil in search of a bears' pain threshold


9 June 2021

The stock and currency markets have been weak since the beginning of the week, with little major reason to move in any direction. Active players on stock and FX markets pause to assess the situation, but Oil continues climbing. Over the last two weeks, oil prices have been rising gently, which is a very interesting dynamic. The price of a barrel of Brent and WTI has surpassed $70, an important psychological and technical milestone. Current levels, near $70.30, were last traded in October 2018 for US WTI. Brent has peaked higher as its price jumped briefly to $75 in 2019 after a drone attack on the Saudi Arabian oil refinery.

However, over the last days, we did not see any signs of the bears’ submission, i.e., short-squeeze, or, vice versa, a loosening of the bulls’ grip with new highs. Instead, gentle buying on intraday declines is pushing Oil higher day by day as if the bulls are trying to find the pain threshold level that a bull surrender would follow, with bears then betting on a fall in crude prices.

What is even more surprising is the sluggishness of related instruments. For example, the USDCAD found itself locked in a tight range, running into solid support near 1.2000. And the Canadian dollar cheered the latest oil momentum with a step-down, trading above 1.2100 at the time of writing.

The currency market is deeper and more liquid, so we perceive a halt in the USDCAD decline with caution: it is quite possible that in Oil, we will see a loss of growth momentum near $75 per barrel Brent as well. The big players want to find the short-squeeze area. However, thanks to the corrective pullback in March, the overbought zone and pain threshold has shifted higher. The currency market dynamics make one wary of the potential for a rally in Oil and a retreat in the dollar. Patient traders might want to wait for a spike in Oil volatility before taking short-term selling positions.

#source

Share: Tweet this or Share on Facebook


Related

Santa Rally: Your Christmas Gift From The Stock Market
Santa Rally: Your Christmas Gift From The Stock Market

Christmas is a religious holiday that has evolved into a cultural and commercial celebration with tales of Santa Claus delivering presents on a reindeer-pulled sleigh through the night sky...

7 Dec 2022

Citigroup heading for UAE
Citigroup heading for UAE

One of the largest and most famous banks in the world is Citigroup, headquartered in New York City… at least, for now. There have been some employee movements...

6 Dec 2022

XAU/USD upside appears more compelling ahead of US NFP
XAU/USD upside appears more compelling ahead of US NFP

Gold price consolidates recent gains around four-month high after crossing the key resistances. Cautious mood, US Dollar rebound allows XAU/USD bulls to take a breather...

2 Dec 2022

Oil’s correction in rumors about further production cuts by OPEC
Oil’s correction in rumors about further production cuts by OPEC

The price of Crude oil resumed the downward movement after failing to cross above the daily trendline which was valid since late June.The price only rebounded to the upside...

1 Dec 2022

The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast
The Downfall of Euro in 2022: the Analysis of its Reasons, the Current Situation, and the Objective Forecast

Before getting down to analyzing why Euro reminds of a mafia victim in cement shoes falling off a Chicago bridge, allow us to open it up with a meme joke that best describes this whole ordeal...

30 Nov 2022

Is Boeing stock about to take off?
Is Boeing stock about to take off?

Boeing stock (BA) has been in free fall since March 2021, from $269 (USD) dropping to $121 at the end of September 2022. And then came a reversal, raising prices to over $175...

29 Nov 2022


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
FxPro information and reviews
FxPro
83%
Vantage information and reviews
Vantage
83%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.