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

Can USD Recover?
Can USD Recover?

The EUR/USD pair is making gains, approaching multi-month highs around 1.0960, driven by a weakened USD and Christine Lagarde's somewhat hawkish remarks before the European Parliament. Minor housing data from the U.S., specifically New Home Sales for October, came in below expectations but didn't significantly impact the pair. Lagarde, President of the...

CPI Release Will Boost The CAD
CPI Release Will Boost The CAD

Canada's forthcoming Consumer Price Index (CPI) data, set for release on Tuesday, is projected to show a year-on-year decline in inflation to 3.2% for October from the previous 3.8%. This potential inflation dip might offer leeway for the Bank of Canada (BoC) to maintain its overnight rate target at 5.0% in the...

Can JPY Reach New Lows By the End of 2023? 
Can JPY Reach New Lows By the End of 2023? 

Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...

Latest news

Is Bitcoin Set to Drop?
Is Bitcoin Set to Drop?

Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...

Top Three Trade Ideas for December 2023
Top Three Trade Ideas for December 2023

Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops

Gold Breaks To New Highs. What Is Expected In December?
Gold Breaks To New Highs. What Is Expected In December?

Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.

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