March crude oil is trading sharply lower fueled by a sharp rise in the U.S. Dollar. When the Greenback rallies, crude oil becomes more expensive for foreign traders. From a technical standpoint, the move is overdue. Overbought indicators have been calling for a top for weeks but the drop in the dollar continued to draw demand from foreign investors.
The chart pattern suggested that the market was poised for a top due to the stagnant trade once it reached a major 50% level at 97.61, but buyers wouldn’t let up on the upside pressure. Last night’s drop in demand for higher risk assets was a little too much to overcome, leading to today’s sharp break.Continue Reading
By FX Empire Analyst - James Hyerczyk
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