OPEC Meeting and Oil

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Soon we will see the results of OPEC meeting in Algeria, and so let’s put oil front as the centre of today’s chart.

We already talked about Iran joining the Algiers meeting as bullish, but the lead up has seen price just chop about as skeptically as the analysts reporting on the meeting.

OIL daily

OIL daily

If you look at the daily chart, you can see that prices initially rose and made a push at swing highs. The initial optimism of oil traders always amazes me. Fading the optimism of oil traders is the gift that just keeps giving, and this time seems no different to any other.

Price has started to roll over out of the following technical level.

Now in saying this, analyst reports are starting to suggest some sort of production cap deal not being far away, as the bigger producers close in on maximum output and may consider a price ceiling to have little downside.

But this is OPEC so just remember that even the word ‘deal’ is just a cat and mouse game and has no certainty to be bullish for overly long.

Moving onto Forex markets and today’s GBP/USD price action is just crying out for the blog to head back to a featured chart of the day!

Post that kind of obvious Brexit drop that has scarred our charts, there is only one GBP/USD level that matters.

GBP/USD daily

GBP/USD daily

Friday’s daily candle on Cable started positively, but heading to the top of our barely 30 pip support/resistance zone was too much for the pair and it rolled over heavily from there and into the close.

Keep your higher time frame levels on your charts and even if you’re a day trader, use them to base your initial bounce/hold direction for your trading.

This Monday

JPY BOJ Gov Kuroda Speaks

EUR German Ifo Business Climate

CHF SNB Chairman Jordan Speaks

EUR ECB President Draghi Speaks

CAD BOC Gov Poloz Speaks

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This is a guest post originally appeared on Vantage FX. Reposted with permission.

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