By Anton Eljwizat – Crude oil prices rose above $89 a barrel today, despite an unexpected rise in US unemployment. Oil has made a significant upward correction, which can be directly correlated with the bullish trend of the EUR/USD cross. This recent activity has raised the stakes for traders. However, I will illustrate below that the oil may very well be heading for a reversal. From here on, the forex and commodity markets will see very high volatility indeed.
• Below is the daily chart for crude oil by ForexYard.
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and Williams Percent Range.
• Point 1: There is a “doji” candlestick that has formed on the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates an impending bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 4: The William’s Percent Range also supports the downward direction.
Crude Oil Daily Chart
Forex Market Analysis provided by ForexYard.
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