Well, it has to be different this time, right?
With key OPEC nations getting a deal to restrain the production output of Oil in order to help support the prices, we witnessed the yearly high smashed overnight.
No matter the expected implications, deals are still being reported as it really is a never ending battle between key Oil producers, with noone wanting to give the upper hand to a rival business even if it means taking a hit themselves.
The crazy inner politics of a monopolistic cartel, right!
Anyway, it was the addition of Russia to OPEC’s market price stabilisation efforts that saw price take out those yearly highs and put some real technical pressure on the chart.
Price has continued to rally hard for the last couple of months and finally reached channel resistance overnight.
As you can see on the daily, price has given the level a little kiss.
Zooming into the hourly and taking a look at the chart from a day trading perspective, that higher time frame resistance level is the key. If the level holds, then in the same way that we marked yesterday’s Euro’s post bounce price action, we’ll be looking for the same sort of setups but from the short side here in Oil.
If you were to read some of the headlines doing the rounds this morning you’d see that THIS TIME THE OIL DEAL DIFFERENT and price will carry onto the moon!
…Who cares, trade the scenario that plays out.
JPY Current Account
AUD NAB Business Confidence
EUR German ZEW Economic Sentiment
Just be aware that each of today’s highlighted calendar releases are second tier. With the US still coming back to their desks following yesterday’s Columbus Day holiday, expect holiday trading conditions to continue throughout Asia and probably into London.
This is a guest post originally appeared on Vantage FX. Reposted with permission.