Will Oil Prices Hit $50 Soon?
The oil prices have declined this week after the new Omicron strain was identified. What should we expect next from oil?
Trading plan for February 6
The most important event for today from the economic calendar is the release of the job’s data for New Zealand at 23:45 MT time. We anticipate the employment change to increase by 0.3% and the unemployment rate to reach 4.1%. If the employment change is higher and the unemployment rate is lower than the expected level, the NZD will be supported.
Also, there is the release of the US crude oil inventories at 17:30 MT time. The number of barrels is expected to accelerate by 1.3 million. If this is true, or the level of crude’s inventories is higher, the price for Brent and WTI will slump.
Let’s look at the charts.
If we look at the daily chart of NZD/USD, we can see that the pair has fallen amid the increased risk-off sentiment. However, the uptrend for the pair is still on as confirmed by parabolic SAR.
On the H4, the pair has already crossed the 50-MA. If it continues to suffer, the first support lies at 0.6843. If the actual figures of job’s data support the NZD, it will rise to the resistance at 0.6882. The next resistance for the pair is placed at 0.6906.
Now let’s look at the key levels for oil.
The private survey of oil inventory data conducted by American Petroleum Institute (API) released earlier this week, showed an increase of the price of the stockpiles. This data combined with the stronger USD pulled the prices for crude oil.
On the H4, the price for WTI has fallen below the 50-MA today. If it continues to move down, it will face with the support at 53.05. The break of this level will pull its price lower to the support at 52.1. If the actual level of crude oil inventories is lower, the price for WTI will rise towards the resistance at 53.8. The next resistance is placed at 54.4.
Now let’s switch to the H4 chart for Brent. Its price has followed a similar scenario to WTI. Up to now, it has already tested the support at 61.74. If this level is broken, the next support is placed at 61.46. If the actual output is lower, the price for Brent will rise towards the resistance at 62.5. The next resistance is placed at 62.85.
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