Can oil reverse after OPEC+ meeting?

Can oil reverse after OPEC+ meeting?

2023-07-04 • Updated

Saudi Arabia and Russia, two of the world's largest oil producers, have decided to extend cuts to their oil production to support oil prices and boost income. This move comes despite weakened demand due to the sluggish economy. The voluntary reductions, which will continue through next year, have had a limited impact on oil prices, providing some relief to consumers worldwide and allowing US drivers to fill their tanks more affordably. The extension of cuts by Saudi Arabia indicates the uncertain outlook for fuel demand, even as travel increases. Both countries require sustained high oil revenue for their economic objectives. Russia, in particular, faces the challenge of Western sanctions, resulting in lower export revenue. Let's now see whatever clue the price action may hold for us.

US Dollar - H4 Timeframe

UsDollarH4-0407.png

We will look at the US Dollar majorly because the Crude oil CFDs I will analyze in this piece are all paired against the US Dollar. The price action, as seen on the attached chart, shows the price leaning on a support trendline which sits perfectly within the vicinity of the 50 and 100 period moving averages; this suggests the likelihood of a bullish price action from the Dollar, which may be short-lived nonetheless.

Analyst’s Expectations: 

Direction: Bullish

Target: 103.497

Invalidation: 102.739

XTIUSD - H4 Timeframe

XTIUSDH4-0407.png 

XTIUSD (US Oil) is currently trading within a consolidation pattern. The main reason why I am going to be somewhat conservative on my risk exposure in this trade is the fact that the Dollar seems to be prepping for a bullish recovery, which could negatively impact the price action here and cause a rejection from the resistance trendline I have drawn on the attached chart. To avoid unpleasant experiences, I will patiently wait for a break out of the consolidation zone before taking in trade in the direction of the breakout. Remember, a missed trade is much better than a lost one - protect yourself, folks!

Analyst’s Expectations: 

Direction: Bullish

Target: 75.08

Invalidation: 69.78

XBRUSD - H4 Timeframe

XBRUSDH4-0407.png 

XBRUSD is creating a similar price action to what we have just seen on XTIUSD and will, as a result, be treated similarly. I expect to see the price break out of the zone before taking a position. This breakout will be the trigger required before taking a market stake.

Analyst’s Expectations: 

Direction: Bullish

Target: 78.71

Invalidation: 74.47

CONCLUSION

The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more of such trade ideas and prompt market updates on the telegram channel.

Similar

CAD: Markets Await GDP Release
CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

Trade of The Week: AUDNZD Trade Breakdown
Trade of The Week: AUDNZD Trade Breakdown

The Australian Dollar (AUD) rebounds on Monday, despite a slight dip in the US Dollar (USD) and higher US Treasury yields. Investors are eyeing Australian monthly Consumer Price Index (CPI) data for February and US Gross Domestic Product (GDP) for Q4 2023. The AUD gains momentum as the ASX 200 Index rises, especially in mining and energy sectors. Additionally, the Aussie...

XAUUSD: Markets Slow Down Ahead of NFP
XAUUSD: Markets Slow Down Ahead of NFP

Gold prices rose on Monday as the US Dollar weakened amidst speculation about potential Federal Reserve rate cuts starting in June. This weakened Dollar was partly due to improved risk sentiment pushing US Treasury yields lower. Despite facing challenges from declining yields, gold prices recovered to nearly $2,170 per troy ounce, driven by the Dollar's weakness. Federal Reserve Chair...

Latest news

USD: Powell Speaks on Cutting Interest Rates
USD: Powell Speaks on Cutting Interest Rates

Jerome H. Powell, the Federal Reserve chair, stated that the central bank can afford to be patient in deciding when to cut interest rates, citing easing inflation and stable economic growth. Powell emphasized the Fed's independence from political influences, particularly relevant as the election season nears. The Fed had raised interest rates to 5.3 ...

WTT: Currency Pairs To Trade In April
WTT: Currency Pairs To Trade In April

Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera