Crude Oil Price Forecast – Crude Oil Markets Got Crushed

Christopher Lewis
·2-min read

WTI Crude Oil

The West Texas Intermediate Crude Oil market has broken down a bit during the trading session on Wednesday, reaching down towards the $37 level. This is in reaction to the concern of the European Union locking down multiple borders, and of course the fact that the US dollar has got quite a bit of a bit during the day. Ultimately, this is a market that I think continues to be negative overall, because quite frankly the oversupply of crude oil still is a major issue. If we break down below the $36 level, then the market is to go down towards the $35 level, and that eventually the $30 level after that. Rallies at this point in time should continue to be selling opportunities.

Crude Oil Video 29.10.20

Brent

Brent markets also fell, reaching down towards the lows again but have bounced slightly during the middle the day. At this point time, the market is still looking to break down and I think eventually we will get below the $38.75 level which would open up the trapdoor to much lower pricing, the first of which being the $37.50 level, followed by the $35 level. Ultimately, this is a market that I think continues to suffer as well, and the Brent market is probably even more sensitive to the European Union than the WTI market is. That being said, this is a market that eventually looks likely to break down and therefore I look at rallies as selling opportunities, especially if we get closer to the 50 day EMA. The 50 day EMA sits just below the $42.50 level, and therefore I think a lot of traders will be paying attention to it.

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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