Crude Oil Price Forecast – Crude Oil Markets Get Knocked Around by Interest Rates

WTI Crude Oil

The West Texas Intermediate Crude Oil market has gone back and forth during the course of the trading session on Friday, as we were starting to reach towards the 50 day EMA. The $70 level has offered a bit of resistance, and it should be noted that as we try to recover, interest rates spiked and then drove the value of the US dollar higher. By doing so, we did up forming a less than desirable candlestick.

On the other hand, if we break down below the lows of the previous week, that would be a massive sell signal. Ultimately, if we were to turn around a break above the 50 day EMA, then the market is likely to go looking towards the $74.50 level. In general, this is a market that I think continues to be very noisy, so keep your position size reasonable.

Crude Oil Video 09.08.21

Brent

Brent markets have also given up the attempt to break above the 50 day EMA, and now sit just above the $70 level. If we break down below the $75 level then you need to keep an eye on that hammer from the last bounce, because if we break down below there it is likely that we go looking towards the $65 level. One thing that I think you need to keep an eye on is interest rates and the US dollar more than anything else, because it does have an external influence on this market. Beyond that, you also have to keep an eye on demand, which looks to be strong but if we start to see the US dollar strengthen, demand could be overwhelmed by the currency factor.

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