USOIL - H4
US Dollar's post-CPI rally weighed USOil down and it remains downbeat today, running a mixed week, despite the solid start to it.
This exposes it again to a familiar and key area of support, as we had warned in our analysis from a couple of days back. Daily closes below the EMA200 and 23.6% Fibonacci (of the summer Low/October multi-year high rise) at around 80.00, will likely pause its upward aspirations.
Such moves would make it vulnerable to fresh November lows (78.24) and could potentially lead to a deeper correction towards the 38.2% Fibonacci (76.36), but testing this level would require more effort.
The commodity had breached the key $80 area last week, but had then managed to rebound. As long as it stays above this level, it stays in the driver's seat and has the ability to push again for new seven year highs (85.42), although two failures this week have created some skepticism.
US Baker Hughes Rig Count is due later in the day, while Monday starts with Retail Sales and Industrial Production form China – all with potential to affect USOIL's movement.
Past Performance: Past Performance is not an indicator of future results.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.