In the European trading session today, the WTI Crude Oil prices escalated. This was due to a surprise issue that just came up amongst Saudi Arabia, Egypt, the United Arab Emirates (UAE), Bahrain and Qatar. To find out more, take a look at our earlier update Let’s Catch The Retracement – Gold Trade Idea! Saudi Arabia and three other countries accused Qatar of backing terrorism and consequently cut their relations with the Qatar. As a result, uncertainty has spread in the Middle East.

Since, all of these countries, excluding Egypt and Bahrain, are members of the Organization of the Petroleum Exporting Countries (OPEC), investors hiked their demand for crude oil due to the uncertainty.  

Forex Trading Signal – Idea

At the point, the crude oil is trading in between the buying and selling level. Therefore, depending on the situation, I'm looking to share a buying entry above $47.50 and a sell position below $48.40.

Crude Oil Hourly Chart  – Symmetrical Triangle Pattern

Technical Outlook – Intraday

The black gold has formed a symmetrical triangle pattern on the hourly chart which represents a high level of indecision between buyers and sellers. The pattern is extending a solid support at $47.25 and a resistance at $48.55.

Looking at the 50-periods EMA, the triangle is likely to break downward, breaking the support to reach another trade level of $47. Stick with us for more live market updates and forex trading signals.