Crude Oil Weekly Price Forecast – crude oil markets very shaky for the week

WTI Crude Oil

The WTI Crude Oil market broke down rather significantly during the week but bounced enough from just below the $65 level to save itself from completely slicing through the uptrend line on the close. Overall though, I think the $65 level must hold for the uptrend to continue. I believe that a lot of this comes down to concern about trade wars and of course the strengthening US dollar. The inventory number this week was horrible as well, so that of course doesn’t help anything either. There are a lot of moving pieces here, but we are still technically in an uptrend until we make a fresh, new low, meaning breaking down through the $63.50 level which was the previous low.

Brent

Brent markets were very noisy during the week as well, breaking down towards the $71 level before finding buyers. By doing so, they formed a somewhat supportive candle, as we are starting to test significant support. I think that the market could rally from here but we need a reprieve with US dollar strength. The US dollar does look as if it is going to soften against other currencies, so if that comes true this week, we could see a bit of a pop in the Brent market. Ultimately, I believe that the next couple of weeks will be crucial, which makes a lot of sense considering we are getting close to the beginning of senior traders coming back to their trading desks in September.

WTI Video 20.08.18

This article was originally posted on FX Empire

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