Crude Oil Price Forecast – Crude oil markets continue to grind

Crude oil markets don’t really have much to do in the short term, as we await the Federal Reserve interest rate announcement and perhaps even more importantly, the statement that accompanies that rate decision.
Christopher Lewis
Crude Oil daily chart, July 31, 2019

WTI Crude Oil

The WTI Crude Oil market of course has tried to rally during the trading session on Tuesday, but it has also found the $57.50 level to be resistance as I had suggested yesterday. That being the case, it’s very likely that what we are about to see is a market that waits for the rate decision to see what happens with the US dollar, and perhaps whether or not the Federal Reserve is going to handle rates going forward. If we continue to see a lot of liquidity out there, it’s very likely that the crude oil markets will react due to a softer greenback. Beyond that, it could signal that the Federal Reserve is willing to stimulate enough to drive industrial demand.

Oil Forecast Video 31.07.19


Brent markets also tried to rally a bit during the trading session but didn’t exactly have an explosive move to the upside. At this point, the 50 day EMA just above at the $65 level should continue to be a bit of resistance, and I think it’s only a matter of time before we try to take that on. At that point though, it’s very likely that we should see some type of fight. If we can break above the 50 day EMA on a daily close, then it will send the market towards the $67.50 level. However, if we pull back from there it’s likely that we go looking for support at the $62.50 level underneath. All things being equal, I think we are going to chop around more than anything else until we get that Federal Reserve statement.

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