Novox 2.25 Reference of Fx market
The demand-side disruptions caused by the Covid pandemic now appear to be largely priced out of the market, with crude prices rising to their highest level since January of last year, before the virus sent energy commodity prices plunging. Earlier this week, Goldman Sachs raised its price target for Brent oil to hit $75 a barrel by Q3, up from a price target of $65.
CRUDE OIL VS 10-YEAR TREASURY YIELD
Upbeat demand prospects, along with depressed drilling and refinery activity are helping drive prices higher as the market attempts to find a balance amid the improving economic backdrop. Alongside improving global Covid cases, a major storm system dented refinery output in the United States last week. While the disruptions are likely short-term, it undoubtedly helped the bull case for oil. Moreover, OPEC continues to artificially suppress the global supply function in oil markets and the consensus is that the cartel will continue doing so in the coming months.
GLOBAL COVID-19 STATISTICS
CRUDE OIL TECHNICAL OUTLOOK
Prices have quickly moved above the 60 psychological level, with current prices just above the 63 handle. Upward momentum may help carry prices higher this week as indicated by the bullishly-trending MACD indicator, which is tracking firmly higher above its signal line. The Relative Strength Index remains under the 70 overbought level despite the rapid price increase.
If a pullback does occur, the 60 handle may present a reasonable target for bears targeting a short-term pullback. However, with a strong fundamental backdrop, the closer 23.6% Fibonacci retracement may provide immediate support. A move higher will see prices quickly climb above 64.00 and target the psychologically imposing 65 handle.
CRUDE OIL 6-HOUR CHART
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- 2020-09-03 11:32 Gold has climbed nearly 30% in the year to date as central banks fill the global economy with stimulus With little end in sight, gold may continue to benefit from looser monetary policy and low interest rates That said, gains may require periods of consol
- 2020-08-31 13:27 GBP/USD set a fresh 2020 high to finish the week. As looked at earlier in August, the bullish side of GBP/USD could be of interest for strategies based around USD-weakness. As is often the case with fresh breakouts, the big question now is ‘what’s next?’