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Crude Oil: Rose on the back of a weak US dollar

Yesterday the US dollar fell after disappointing US ADP employment change for March the survey showed 189K new jobs against 225K expected, whilst previous month figure was revised up to 214K. A weaker dollar makes commodities denominated in US dollars cheaper for holders of other currencies, typically boosting demand for such raw materials.

The U.S Energy Information Administration (EIA) yesterday, released its latest survey. The report was expected to show a decrease in crude oil stocks with estimates at 4.500 million barrels but the actual was worse than expected rising to 4.766 million barrels.

Yesterday crude oil price rose more than 4.0% on an average volume, breaking above the 50-day moving average and close near the high of the day, making a bullish engulfing pattern. The commodity is in an unconfirmed recovery phase and the stochastic is showing bullish momentum.

Expecting upward move to a daily key level at 52.40 on a break above previous day high at 50.42 (scenario 1).

LCrude is a CFD written over Light Crude futures.