Oil Price US Dollar

Oil Price Consolidates Recent Gains Above $48 Vs US Dollar

  • Crude oil price gained heavy bids recently and moved towards $48.50 against the US Dollar.
  • There was a break above a bearish trend line at $46.15 on the hourly chart to initiate the uptrend.
  • Recently in the US, the API Weekly Crude Oil Stock in the week to July 25, 2017 was released.
  • The outcome was positive, as there was a heavy decline of 10.23 million barrels in the crude oil inventories, more than the forecast.

Oil Price Technical Analysis

There was a sharp rise in oil prices recently, as there was a break above a major resistance near $46.00 against the US Dollar. The price even broke the $47 and $48 handles to set the pace for more gains in the short term.

During the upside move, there was a break above a bearish trend line at $46.15 on the hourly chart. The price traded as high as $48.48 where it faced sellers.

The price found a major resistance near $48.50 since there is a connecting bearish trend line on the same chart.

Oil Price Hourly Chart

Oil Price Technical Analysis

The price is currently correcting lower, and may test the 23.6% Fib retracement level of the last wave from the $46.29 low to $48.48 high.

However, the most important support is near $47.60-50 and the 38.2% Fib retracement level of the last wave from the $46.29 low to $48.48 high.

Buying dips near $47.60-50 can be considered in the near term for a bounce back and stop below $47.10.

API Weekly Crude Oil Stock

Recently in the US, the API Weekly Crude Oil Stock in the week to July 25, 2017 was released. The market was expecting a decline in the crude oil inventories by roughly 3 million barrels.

However, the actual result was positive, as there was a heavy decline of 10.23 million barrels in the crude oil inventories, more than the forecast. On the other hand, the Gasoline supplies rose 1.9 million barrels, which was less than the last 5.45 million barrels.

According the report, the Cushing, Oklahoma, registered a substantial draw of 2.57 million barrels the 15th weekly draw out of the last 16 weeks.

Overall, there can be more gains in oil prices, but there can be a minor correction towards $47.90 or $47.60.

About Aayush Jindal 109 Articles
With over 10 years of experience and still counting, Aayush posses great technical and fundamental analysis skills in the Forex, Cryptocurrency and Financial Markets. His Analysis are well-know and famous for engaging with viewers easily. He is from IT background with a lot of passion in the Forex and Cryptocurrency Arena.


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