Canada Markets closed

Oil and EUR in Troubles

Tomasz Wiśniewski

The influence on the USD was limited but the Greenback finished Wednesday on the bullish side of the market. Data that shook the market was EIA Crude Oil Inventories. Build of 4.7 M barrels was not exactly what buyers could have expected. That number was a direct trigger for the investors to sell Crude. Price went down, which resulted with a proper sell signal as the WTI dropped below the major up trendline and the lower line of the flag formation. Current sentiment is negative.

EURUSD defended 1.118 again, which is a positive sign for Dollar. The price created a long head on the daily candle again, which shows us the bearish determination to keep the price lower. As long as we stay below the yellow area, the signal to go short is ON.

Negative setup can be also seen on the EURCHF. Yesterday, the price failed to break the neckline of the double bottom formation, which could have been a trigger to go long. Instead of this, we witnessed a bounce and a price making new mid-term lows. As long, as we stay below the black line, EURCHF should continue to decline.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

More From FXEMPIRE: