Oil Rally: How Low Can It Go?

<p>Good day!</p>
<p>The EUR/USD currency pair was very volatile last week and has been for a while now. On Friday the asset’s price reached the 1.0778 level which could support the downtrend. The asset can also pull from the 1.0636 supporting level, located slightly below the current prices. Now, it’s also wise to rely on the candlestick formations which can provide additional indications regarding the asset’s future:</p>
<p><img class="alignnone size-large wp-image-41248" src="http://blog.tickmill.com/wp-content/uploads/2020/04/1-5-1024×475.png" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/1-5-1024×475.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-5-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-5-768×357.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/1-5.png 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>The data provided by COT CFTC show that Euro could become stronger in the mid-term, as large operators keep decreasing their short positions and expanding the long ones. Large operators also prefer to rather go long than stay short. Therefore, the data could indirectly signify the potential growth of Euro prices:</p>
<p><img class="alignnone size-large wp-image-41254" src="http://blog.tickmill.com/wp-content/uploads/2020/04/2-1024×535.jpg" alt="" width="1024" height="535" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/2-1024×535.jpg 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/2-300×157.jpg 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/2-768×401.jpg 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/2.jpg 1127w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>After Trump’s interesting tweets and intentions to hold the video conference with OPEC+ to stabilize oil prices, oil managed to pull from the psychological level of 20. The asset is currently targeting the downtrend. It seems that asset’s price has finally reached critical levels and all the other countries decided to take necessary measures to stop this from happening. It’s probably due to the fact that oil-exporting countries are losing a lot of money due to the ongoing economic crisis and epidemic, and they really need them here and now. The situation has worsened in a matter of weeks. We just can’t help but wonder how many millions of oil barrels the oil producers are going to cut from the output. Let’s just wait and see what happens next:</p>
<p><img class="alignnone size-large wp-image-41250" src="http://blog.tickmill.com/wp-content/uploads/2020/04/3-2-1024×475.png" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/3-2-1024×475.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-2-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-2-768×357.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/3-2.png 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>The USD/RUB currency pair pulled from the 75.50 level which it’s targeting right now. The video meeting of the OPEC+ countries is coming up and Russia is looking forward to discussion with the US representative at that time. Therefore, it could be prudent to follow the candlestick formations next to the 75.50 level as the asset might even break this level down against positive signals from OPEC:</p>
<p><img class="alignnone size-large wp-image-41251" src="http://blog.tickmill.com/wp-content/uploads/2020/04/4-1024×475.png" alt="" width="1024" height="475" srcset="https://blog.tickmill.com/wp-content/uploads/2020/04/4-1024×475.png 1024w, https://blog.tickmill.com/wp-content/uploads/2020/04/4-300×139.png 300w, https://blog.tickmill.com/wp-content/uploads/2020/04/4-768×357.png 768w, https://blog.tickmill.com/wp-content/uploads/2020/04/4.png 1094w" sizes="(max-width: 1024px) 100vw, 1024px" /></p>
<p>Let us remind you that this material is provided for informative purposes only and cannot be considered as a direct go ahead to implement transactions in the financial markets. Trading in the financial markets is very risky.</p>
<p>The post <a rel="nofollow" href="https://blog.tickmill.com/tech-analysis/oil-rally-how-low-can-it-go/">Oil Rally: How Low Can It Go?</a> appeared first on <a rel="nofollow" href="https://blog.tickmill.com">Tickmill</a>.</p>