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Crude Oil Price Forecast – Crude Oil Continues to Bounce

Christopher Lewis

WTI Crude Oil

The West Texas Intermediate Crude Oil market rallied rather significantly early during the trading session on Wednesday but is coming up against the 50 day EMA. What is going to be interesting and telling is how this market reacts after the Federal Reserve meeting. This is because the US dollar will move in one direction or the other, and traders will try to figure out the idea of demand going forward. Quite frankly, the sudden break down a couple of weeks ago tells me that we are probably still looking to fade the rallies, and the $40 level of course could be an area that a lot of people pay attention to, due to the fact that it was previous support. I will be looking to fade signs of exhaustion on short-term charts.

Crude Oil Video 17.09.20

Brent

Brent markets rallied a bit during the trading session as well, just as you would anticipate. The 50 day EMA above is currently at the $42.50 level. That is an area that will attract a certain amount of attention, and of course with the volatility in crude oil we should be looking at the possibility of a pullback, and at this point I am not completely convinced about the efficacy of any rally, but I do recognize that bouncing from the $40 level course is rather important. The question now comes down to whether or not there is going to be enough demand, and quite frankly I think that is still a major problem. Granted, US numbers came out better than anticipated yesterday, but at the end of the day we are still a long way away from demand taking off.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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