WTI Crude Oil Jumps on Weaker Dollar – EIA Report Surprises - Forex News by FX Leaders
EIA report shows more than expected draw...

WTI Crude Oil Jumps on Weaker Dollar – EIA Report Surprises

Posted Thursday, June 14, 2018 by
Arslan Butt • 1 min read

Crude oil began the week with a moderate gain over a number of fundamental reasons. The recent gains in the oil prices are led by weakness in the dollar in response to a rise in the U.S. interest rate from 1.75% to 2%. Moreover, the exchange of aggressive remarks between the U.S. and Iran is also fueling the demand. Here’s a trade idea for today…

Early in the Asian session, the U.S. dollar came under selling pressure despite the absence of economic catalysts. It looks like the investors are unwinding their position after a rise in the interest rates.

As we recall, there’s a negative correlation between the dollar and crude oil prices. Since crude oil is denominated in the dollar, a weaker dollar makes the crude oil cheaper for global investors. Thus, they increase the demand, perhaps in order to stock it for future use. That’s what’s making crude oil bullish today.

WTI Crude Oil – Technical Outlook

Crude oil is trading in the overbought zone after a series of bullish fundamentals. The candlesticks analysis is suggesting a bullish bias of investors. WTI is consolidating above $66.45 support on the 4- hour chart and it has formed a bullish engulfing pattern which is signaling the dominance of bulls. Oil can face an immediate resistance at $66.75 and $67.50 (100 periods MA).

WTI Crude Oil - 4 Hour Chart

Support Resistance

66.04 66.84
65.8 67.08
65.4 67.48

Key Trading Level: 66.44

WTI Crude Oil – Trading Plan

Today’s forex trading signal is to stay bullish only above $66.45 to target $67 and $67.45. Whereas, selling is preferred only below $66.45. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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