Crude oil forecast
US Crude oil prices trading at 65.20$, It cracked a little when US inventory came surprisingly positive from -3.6M vs 2.1M. Expectations were -2.0M.
Currently prices trading flat since there is no major direction. A good support on oil chart stands at 64.30$, If traders break and sustain below this level then expect fresh panic in crude oil prices upto 63.30$- 62.40$ today.
A good resistance on crude oil chart stands at 66.70$, It is same support which we mentioned in our yesterday’s analysis If traders break and sustain above this level then expect good recovery in crude oil upto 67$- 68$ today.
Crude oil forecast conclusion: Trend is still weak as prices are containing regularly and not showing any strength. Once it break our resistance then we would suggest a buy. Till then we wait.
Dollar Index analysis
Dollar Index has a dramatic day yesterday when it fell from 93.50 to test below 92.98. Then pressure came on bonds and it started to recover which pushed gold prices to roll back from 1302$ to 1295$. Equity markets gave dollar index much needed push and it survived the disaster below 92.90.
Currently its cruising well above 93, A good resistance on greenback chart stands at 93.52, If traders break and sustain above our resistance. Then expect good recovery in greenback upto 93.80- 94.20.
A good support on dollar index chart stands at 92.90, Once traders slip through this level and sustain below our support. Then expect good hammer in dollar upto 92.60- 92.30.
Yesterday greenback inflated by bond market and stunning show by US equity markets. Dow Jones Index gained good solid 300 points and closed above 25100 while Nasdaq gave closing at lifetime high. Other than those factors we did not see any strength in dollar. So we would advice extreme caution if you are in buy side of greenback.
Dollar Index analysis conclusion: Trend is positive till it sustain above 92.90, Below 92.90 we go hard sell.
More will update to our signals subscribers.