Crude Oil Price Forecast – Crude Oil Markets Get Hit on Friday With Surging Dollar

WTI Crude Oil

The West Texas Intermediate Crude Oil market has pulled back a bit during the trading session on Friday, reaching down towards the 200 day EMA. The 200 day EMA is the beginning of support going down to the 50 day EMA, and I look at that as a “zone of support.” If we were to break down below the 50 day EMA, which is basically the $40 level, then I think this market could unwind. Pay attention to the US dollar, as a rising US dollar could cause a bit of a pullback in a market that quite frankly has no business being up here.

Crude Oil Video 24.08.20

Brent

Brent markets also pulled back during the session on Friday, sitting just above the 50 day EMA. The 50 day EMA signifies that we are going to go much lower if we break down below it. The $40 level would be the first level of potential, and then a break down below there could open up a move down to the $37.50 level. To the upside, if we can break above the 200 day EMA which is painted in blue, then I think it opens up a move towards the $50 level. Again though, if you can pay attention to the US dollar that will lead your trading as a rising dollar is bad for crude oil because it takes less of those dollars to buy a barrel. On the other hand, if we see the US dollar lose value again, that should help lift the crude oil market in general, as they tend to move in the opposite directions.

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