Today, we will discuss about OIL, and search for a possible trade opportunity. OIL is trading higher after setting a base at around the 92.50 level. The OIL consolidated around the 93.00 level, and then moved higher. It has formed a nice bullish candle on the daily chart as well. So, I think we should look forward to buy dips in the OIL.
Looking at the 4 hour chart of OIL, the RSI is around the extreme level. So, I think OIL may drop down towards the 95.00 support level, and then move higher again as shown in the chart below. If OIL drops towards the highlighted support region, makes a stop and forms a combination of 4 hour (bullish hidden) and 1 hour (continuing) divergence, then we will enter a buy trade for OIL.
Initial target should be around the 200 moving average on the daily chart, and final target could be around the 101.00 level. Stop should be placed below the 93.80 support level.
Reviewing yesterday’s events and trades
Yesterday, the pairs like GBPUSD and EURUSD traded higher as the data for the respective region continue to impress the market. The Spanish unemployment data was released earlier in the EU session yesterday, which registered an impressive decline, as the registered unemployment fell for the first time in November with 2475 fewer employed. The EURUSD pair traded as high as 1.3613. Moreover, the UK’s construction PMI figure was also released, which jumped to a new high of 62.6 from 59.4, which pushed the GBPUSD above the 1.6400 figure once again.
Fundamental Outlook for the day
Today earlier in the Asian session, Australia’s GDP data was released. The outcome was disappointing, as the Australia’s GDP (QoQ) registered a growth rate of 0.6%, missing the expectations of 0.8%. The Aussie declined after the released, and AUDUSD traded as low as 0.9032. A lot of important fundamental events are scheduled during the day. The US ADP Nonfarm employment change data, ISM non-manufacturing PMI figure, new home sales data and Fed’s Beige book are scheduled to be released during the NY session. So, keep an eye on all these events, as the speculation of the Fed to taper in December may increase if the data does not disappoint.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURUSD, GBPUSD, USDCAD, USDJPY, AUDUSD, AUDNZD, EURCAD and EURAUD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
