Crude oil moves back toward $49.00
The draw down in oil inventories (crude and gas) has crude prices moving toward $49.00 and the USDCAD moving toward the defined support against the 100 and 200 hour MA (blue and green lines in the chart below).
As posted earlier, the 200 hour MA (green line) was broken yesterday. The close above was the first since May 15th. The price has been waffling up and down today, with the high falling short of the high from yesterday. The low just reached the two key hourly MAs below at 1.34687 and 1.34725 (the low reached 1.34708).
Although the buyers today have not seen new week highs, the buyers are leaning on the dip, and putting their faith in the MA lines holding support. If it does, (risk is defined and limited) a move back above the 1.3494 (38.2% retracement) should give the buyers some breathing room.
If on the other hand, the MAs are broken, I would expect the buyers to turn to sellers and the price to wander back to the downside.
Key intraday support area. Will it hold?