Morning Report

Crude managed to successfully breach the short term descending channel and halt at 23.6% Fibonacci correction for the full previously mentioned bearish wave, where additional resistance is coming from the MA 50. Crude returned trading above support for the general previously breached bullish direction currently at 74.15. Therefore, we need to observe crude today to insure the upcoming direction through the breach of one of the levels that will be stuck in trading between them; between support 74.15 and resistance 75.10. Momentum indicators are showing negative signs that might pressure crude to retest main level 74.15.

The trading range for today is among the key support at 71.00 and the key resistance at 76.80.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.

RecommendationBased on the charts and explanations above our opinion is to avoid trading awaiting more confirmation signs for the pair’s direction, might be appropriate.