Forex Marketz Daily Forex News – Fully Markets Update
Points to consider with Crude Oil
- The price of crude oil gets ready for commentary from OPEC.
- Cautious Fed speak could sap money from commodities today.
US WTI Crude oil is marking its time as investors are eying new comments from OPEC on how they are going to implement their production output scheme. Oil cartel members are meeting in Abu Dhabi for a number of conferences this week. The group’s Secretary General Mohammad Barkindo is on his way to Kuwait which chairs the OPEC monitoring committee tasked with production cuts. This will make for some serious headline risk which could mean volatility in the price of the black gold this week.
There is also Federal Reserve policy speculation in focus this week as markets are bracing for comments from Fed officials. Eric Rosengren and Dennis Lockhart, from Boston and Atlanta respectively, will be making comments today. A repeat of the cautious tone seen in the minutes from the December meeting could dampen the mood on tightening bets. This could be good for commodities including gold and oil.
Crude Oil Technical Analysis
Let’s get into today’s daily crude technical analysis. We will use the above daily MT 4 chart. There is near term resistance lining up at 54.02. A daily close above this first upside barrier challenges the next technical resistance level that line up at 54.20.
The alternative crude technical analysis notes former resistance, now a technical support level at 51.65. A break below this first downside barrier, challenges the next technical support level that lines up $50.25 per barrel.
There will be other event risk, other than OPEC affecting the black gold this week and into the next few weeks. In Europe, there is upcoming Brexit headline risk. In the United States, the presidential inauguration happens on January 20.
