This week sees the conclusion of the OPEC meeting in Algeria, putting oil front and centre as this week’s in play chart.
We had spoken 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:
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.
Post that kind of obvious Brexit drop that has scarred our charts, there is only one GBP/USD level that matters.
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.
On the Calendar 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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