WTI Crude Oil
The West Texas Intermediate Crude Oil market initially fell during the trading session on Friday, reaching down towards the $40 level. We have bounced from there to show signs of resiliency again, as we are testing the 200 day EMA. That being said, there is still little bit of resistance at the $43 level, so it will be interesting to see whether or not we can break above there. If we do in fact break above there, the market is likely to go looking towards the $45 level, possibly the $50 level. However, it is interesting to see whether or not the bullish inventory numbers can keep moving in the correct direction for oil traders, and of course we have to pay attention to the US dollar because a rally in that currency could weigh upon this market as well.
Crude Oil Video 21.09.20
Brent markets also were treading water during the trading session on Friday, as they are dancing around the 50 day EMA. If we do break above the 200 day EMA, then it would change quite a bit, perhaps reaching towards the $50 level. That being said though, if we see the US dollar strength in and of course people start to focus on the fact that demand is falling, not rising, so at this point it is probably only a matter of time before we rollover again. Right now, we do not have the signal, but I am definitely watching in this area just below the 200 day EMA for a potential reversal of momentum after we had recently broken down.
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This article was originally posted on FX Empire
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