Oil prices have tumbled down and remained on the low ground. The recent negotiations between OPEC and non-OPEC members about an extension do little to alleviate the pressure. And what do technical levels tell us? The team at Barclays analyzes the dynamics:
Here is their view, courtesy of eFXnews:
CitiFX Technical FX Strategy Research notes that Oil charts suggest that there is a confirmed double top which targets a move to $46.50.
As such, Citi points to support at the 55 week moving average ($47.38) which is currently holding but a weekly close below would suggest that a move down towards the $41.90-$42.58 area is possible.
However, Citi views these short-term bearish dynamics, to be corrective in nature and maintains a positive bias on Oil over the next 18 months.
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