Crude oil prices are moving to the upside
The prices of crude oil are moving to the upside. OPECs Barkindo was on the wires earlier saying that he expects US shale production to be less than expectations in 2020. That seems to have push the price of crude oil higher. The contract is currently trading at $57.36 up $0.56 or 0.97%. That is at the highs for the day. The $57.30 level is home to the 200 day moving average. The last 8 trading days at the price trade above and below the 200 day moving average with a high price of $57.88. Getting above that level - and staying above the 200 day moving average - would be more bullish for Crude.
The high price of crude seems to have push the USDCAD to the downside (CAD can tend to move higher as the price of oil extends higher).
Technically,the peak today stalled at a topside trend line on the hourly chart at 1.32667. That hold also helped turn the buyers and the sellers against the risk defining level.
The moved to the downside today also tested a support level defined by a trendline at the 1.3231 level and held so far. So there is a battle going on between the upper and lower trend lines. The low today has so far reached 1.3234.
A break below the trend line level level will be needed to extend the downside potential and give sellers more confidence that the top is in place.
IF broken, traders willl look to work into other support levels from the recent run higher including the:
- 100 hour moving average at 1.3221
- A cluster of swing levels at 1.3207-12.
- The 38.2% retracement of the move up from the November 5 low at 1.32089.
A break below those levels will next have the 100 day moving average as a target at 1.31954 currently.
For now, the pair sits between trendline support and trendline resistance. The buyers and sellers are battling it out.
