Crude Oil Struggling With a Looming Trade War - Forex News by FX Leaders

Crude Oil Struggling With a Looming Trade War

Posted Wednesday, March 7, 2018 by
Rowan Crosby • 1 min read

Crude Oil has been up and down on the news that US President Trump was looking to impose tariffs on steel and aluminium. When economic advisor Gary Cohn ultimately resigned, Oil made another push lower along with US equities.

There was a little relief in sight as the day ended as EIA inventories came in with a build, but it was lower than forecast. And a lot less then we saw only a day earlier from the API.

So what does this all mean for Crude Oil?

Technical Outlook

We just can’t seem to make up our mind as to which direction we are going to be heading in the short-term. There are a number of bearish factors around at the moment, but we can’t overlook the fact that the overall trend is still to the upside.

I think 60.00 is going to provide a floor for the time being. By virtue of the fact that it is going to take a big push to get us through the lows. And the next major area of high volume below is around 57.00.

With that in mind, I think we can look to buy dips nearing 60.00.

To the upside 64.00 is a clear target for me. If we start moving higher this is where we will settle in the short-term.

Either way we need to gain some direction and at the moment, the action has been a little back and forth. The fact that we have US employment on Friday will also only add to the volatility.

Oil – 240 min Chart.

 

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