Crude oil under pressure amid Iran deal; Fed weighs

FXOpen

Crude oil is making recovery in Asian session today after falling to $91.63 on Monday amid Iran deal that would ease economic sanctions thus the country may be able to resume exports.

Light Sweet Crude Oil futures for February delivery slid down sharply in the US session yesterday when news showed that talks among Russia, China, France, Britain, Germany, the US and Iran had ended successful on a crucial agreement that would halt Iran’s nuclear advancements and in return the country could export its products including oil that would boost global oil supply.

Crude oil is being traded at $92.22 per barrel at the time of writing in Asia. Bias looks very bullish in near term as the commodity has printed a higher low as well as a classic double bottom pattern on hourly chart as shown below.

Crude oil under pressure amid Iran deal; Fed weighs

As you can see the neckline or the highest point between the two bottoms is at $93.54 that must be broken in order to complete this double bottom price pattern, in turn ending the price around $95.72.

It is however pertinent that contrary to technicals, the macroeconomic scenario is certainly not positive for the black gold. On Friday the US labor department revealed that the unemployment rate has fallen down to 6.7%, the lowest level in more than five years. Earlier ADP research institute had also said in a report that significant progress was made by labor sector.

Keeping in view the continuity of impressive outcomes showed by labor sector and better than expected GDP rate in 3rd quarter, the US central bank in December announced trimming in its unparalleled monthly bond buying program worth $85 billion. Furthermore minutes from Federal Open Market Committee (FOMC) December meeting revealed that this was only a beginning, Fed policymakers actually wanted to repeat this action on every meeting until the bond purchase program is completed ended in October this year.  This phenomenon is keeping Crude Oil as well as all other commodities in bearish pressure.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

SNB Unexpectedly Lowers Interest Rate from 1.50% to 1.25% GBP Awaits Bank of England Verdict: Volatility Ahead? Market Analysis: AUD/USD and NZD/USD Sight Steady Increase European Currencies Adjust to Support Levels: Is Growth Possible? NZD/USD Exchange Rate Falls from Nearly 5-Month High

Latest articles

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil
Financial Market News

Weekly Market Wrap With Gary Thomson: Nasdaq 100 Index, GBP, SNB Interest rate, Brent Crude Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • Nasdaq 100 Index Reaches
Analytical META Stock Predictions for 2024, 2025-2030, and Beyond
Trader’s Tools

Analytical META Stock Predictions for 2024, 2025-2030, and Beyond

Meta Platforms, Inc., formerly known as Facebook, is a leading technology company renowned for its social media and virtual reality innovations. This article provides a detailed analysis of Meta's stock performance, future analytical projections for 2024 to 2030, and the

Commodities

Natural Gas Price: Bullish Trend Weakens

Forecasts of a hotter summer, published during April and May, led to a sustained bullish trend in the natural gas market, as this commodity is heavily used for air conditioning.

Specifically:
→ The XNG/USD chart indicates that from 1st April

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.