Crude Oil Price Forecast – Crude Oil Markets Still QuietCrude oil markets did very little during the trading session on Thursday, as we continue to hang around the same area we have been at all week.
WTI Crude Oil
The West Texas Intermediate Crude Oil markets have done very little during the trading session on Thursday, as we continue to hang around the $40 level, and of course the 50 day EMA. At this point, the market looks as if it is simply trying to figure out where it wants to go next, as the most recent move has been decidedly negative. At this point, the US dollar is a major contributor to where we go next, as the inverse correlation has been very strong. I think at this point in time we are looking for some type of direction that we can hang onto, but it is worth noting that the most recent high was lower than the one before it.
Crude Oil Video 25.09.20
Brent markets rallied a bit during the trading session but are still struggling with the 50 day EMA. Ultimately, this is a market that looks vulnerable above though, and therefore I will be looking to fade rallies, especially if the US dollar starts to strengthen again. In the short term, it is likely that the US dollar may soften a bit, but it has decidedly switched more to a bullish trend, which works against commodities in general. At this point, I do believe it is only a matter of time before we see a continuation of the breakdown that we started, and if we can clear the $40 level to the downside, it is likely that this market could go much lower. I have absolutely no interest in buying crude oil right now as the global economy is slowing down.
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