Trading Insights: Crude Oil to remain bearish

Market Commentary

Crude oil looks to remain bearish because:

1. It did not happen, expectations that China's oil demand would have increased after the removal of the COVID lockdowns.
2. The media has been “jawboning” and telling the markets that higher interest rates will slow down economic growth, to the point some people actually believe it, despite the rather healthy underlying economic conditions.
3. The voluntary oil production cuts from Saudi have kicked in, however, the cuts have not moved oil prices that much higher since the first announcement of the cuts.
4. The US has a high availability of crude oil production which can counterbalance OPEC’s efforts to push up oil prices in the short term.
5. The US wants lower oil prices for its domestic policy as well as its multitude of geopolitical objectives.

Do you have an opinion on where Oil prices are heading? Express your opinion with Crude Oil CFDs.

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Upcoming economic events

• Wednesday July 5th: US FOMC meeting minutes
• Thursday July 6th: US JOLTs
• Friday July 7th: US Nonfarm payrolls (NFP)

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Today’s economic calendar

Federal Open Market Committee (FOMC) Minutes

• The minutes are released normally around three weeks after a US Fed interest rate decision.
• The minutes provided insights into how the committee voted and what was discussed that lead the committee to make any policy decisions

Source: TradingView / J. Knobel July 5 2023 8:29 UTC

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Trading insights & strategy

GBPUSD trending

Higher tops and higher bottoms on price suggest an uptrend

• Current price 1.2713
• Upside prospects for an extension towards 1.2980
• Downside risk below the 1.2590 support could expose the lower key support near 1.2370.