Oil Remains Supported at the 200 SMA Despite the Bounce in the USD
Yesterday we saw a bearish move in crude Oil, as the USD progressed higher. US WTI fell more than $4, from below $90 to $85.40s. Although, crude Oil reversed higher today after finding support at the 200 SMA (purple) on the H4 chart, recuperating losses from yesterday, on optimism that China, the world’s second-largest Oil consumer, could reopen from strict COVID restrictions.
UK Brent crude Oil for January contracts rose $1.53, or 1.7%, to $94.34 a barrel. The December contract expired on Monday at $94.83/barrel, down 1%. US WTI Oil increased $1.60, or 1.85% higher to $88.13 after falling 1.6% in the previous session.
Crude Oil H4 Chart – The 200 SMA Has Turned into Support
Is this a bullish reversal on larger charts?
US October 2022 ISM Manufacturing PMI
- October ISM manufacturing 50.2 points vs 50.0 expected
- September ISM manufacturing was 50.9 points
- Prices paid 46.6 points vs 52.5 expected (prior 51.7 points) — the first decline since May 2020
- Production 52.3 points vs 50.6 prior
- Employment 50.0 points vs 48.7 prior
- New orders 49.2 points vs 47.1 prior
- Order backlog 45.3 pointsvs 50.9 prior (first reading below 50 in 27 months)
- New export orders 46.5 points vs 47.8 prior
“The US manufacturing sector continues to expand, but at the lowest rate since the coronavirus pandemic recovery began. With panelists reporting softening new order rates over the previous five months, the October index reading reflects companies’ preparing for potential future lower demand,” the report said.
“Weakness in European economies and China’s economic sluggishness continued to constrain new export orders expansion and negatively impact new order rates,” the report said.