CRUDE OIL TECHNICAL ANALYSIS
Crude oil surged in early April following OPEC+’s sudden announcement to chop manufacturing to stabilize power markets. The determination briefly carried WTI futures to their greatest ranges since November 2022, however the bullish impetus pale rapidly when costs had been unable to clear cluster resistance in the $83.50 space.
The chart beneath exhibits how oil has pulled again aggressively in current weeks after its failed try and recapture its 200-day easy transferring common. In reality, the sell-off accelerated right this moment when the $74.00 barrier was taken out, a transfer that pushed the commodity to its lowest level since late March.
After Tuesday’s droop, oil seems to be sitting above trendline resistance turned assist at $71.50 – a key technical area to observe in the close to time period. Bulls don’t need to see costs slip beneath this ground as a breakdown may pave the best way for a retest of $70.25 forward of a transfer towards $66.40.
On the flip facet, if merchants handle to defend dynamic assist at $71.50 and spark a bullish turnaround, preliminary resistance seems at $74.00. On additional energy, consideration shifts larger to the 50-day easy transferring common situated close to $76.60.
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CRUDE OIL FUTURES TECHNICAL CHART
Crude Oil Futures Chart Prepared Using TradingView
USD/CAD TECHNICAL ANALYSIS
The sell-off in oil, in live performance with the subdued sentiment, has been a headwind for the Canadian greenback – a high-beta currency delicate to international progress scares and power market developments. As crude costs headed decrease in current days, USD/CAD regained its footing, rising from 1.3300 to 1.3625 in lower than three weeks, with the change price now above its 50-day easy transferring common.
Overall, the outlook for USD/CAD has turned extra constructive, however to be assured in the bullish thesis, we have to see the pair break above cluster resistance at 1.3650/1.3670, an space the place a short-term descending trendline converges with the 61.8% Fibonacci retracement of the March-April pullback. A transfer above this ceiling would plead in favor of a retest of the psychological 1.3700 stage, adopted by 1.3865.
On the opposite hand, if sellers regain decisive management of the market and spark a bearish reversal, preliminary assist is situated close to the 50-day easy transferring common. If this ground is breached, nevertheless, bears may turn into emboldened to problem trendline assist crossing the 1.3500 deal with. On additional weak point, the 200-day easy transferring common may turn into the following draw back goal.
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