Crude Prices Flirt with Key Resistance- 2017 Opening Range Intact

Talking Points

  • Crude prices examine pivotal insurgency / 2017 opening operation highs
  • Updated targets cancellation levels
  • Looking for some-more trade ideas? Review DailyFX’s 2017 Trading Guides. Join Michael for Live Weekly Trading Webinars on Mondays at 13:30GMT (8:30ET)

Crude Weekly

Crude Weekly Chart

Technical Outlook: Crude prices are once again probing a infamous insurgency operation tested progressing this year during 54.74- 55- this segment is tangible a 78.6% retracement of a decrease off a 2015 high a 61.8% prolongation of a allege off a 2016 low and intersect on a top median-line together of a 2015 descending pitchfork. Note that this turn also outlines a yearly opening operation high. The evident allege stays during risk while next this threshold and likewise, a weekly tighten above would advise a some-more suggestive allege is underway.

Crude Daily

Crude Daily Chart

Notes: A closer demeanour during a daily draft sees today’s high induction precisely during a 61.8% prolongation and while it’s still too early to tell if this insurgency separator will hold, a allege stays during risk while below. Look for an initial pierce / tighten next 54.29 to symbol a conflict of a pullback with a mangle next a monthly open during 52.78 indispensable to change a concentration behind towards a operation lows- such a unfolding would eyes successive objectives during 51.40/64 pivotal support into 50.60.

Keep in mind that vast speculators continue to reason record prolonged positioning given Jan and with a marketplace so heavily weighted, a chasm could be rather vicious. That said, a crack above a 55-handle still has to contend with near-term targets during channel insurgency (currently ~55.85) and a 2015 May low during 56.49 – If reached would also be an area of seductiveness for depletion / short-entries.

Looking for trade ideas? Review DailyFX’s 2017 1Q Projections

Other Setups in Play:

  • USD/CAD Constructive Above 1.3070 Ahead of Canada Retail Sales
  • EUR/NZD Targeting Resistance- Monthly Range Break to Validate Outlook
  • AUD/USD Eyeing Topside Targets Ahead of Aussie Jobs Report
  • USD/JPY Clears Monthly Range, Trendline Resistance Ahead of U.S. CPI

—Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michaelon Twitter @MBForex hit him during mboutros@dailyfx.com or Click Here to be combined to his email placement list.

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