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24 June 2024,02:11
Trade Of The Day
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* Solid Green: Crude prices dropped by about 1% on Friday due to concerns that global oil demand growth might be affected by a strong U.S. dollar and negative economic news from various regions. The U.S. dollar reached a seven-week high against a basket of other currencies, with the Federal Reserve’s cautious approach to lowering interest rates standing in contrast to more dovish policies elsewhere. The Fed had aggressively hiked interest rates in 2022 and 2023 to combat rising inflation. These higher rates increased borrowing costs for consumers and businesses, potentially slowing economic growth and decreasing oil demand. Moreover, business growth in the Euro Zone decelerated sharply this month as oil demand declined for the first time since February.
* Technical Breakout: Crude oil price was traded lower following prior retracement from the resistance level 81.05. MACD which illustrate bearish momentum signal suggest the commodity to further extend its losses.
* Resistance and Support: If the bearish momentum persists, there’s a strong likelihood that the price will potentially head towards 79.35. Conversely, a potential correction is also to be expected and the price could head back towards 81.05.
Understand how technical analysis can help you in this trading opportunity.
Looking ahead, the market will be closely watching upcoming data including the EIA Weekly Status Report, OPEC updates, and API inventory reports. Additionally, there will be continued attention on key economic data from the U.S. that will impact the value of the dollar and exert influence on the commodity prices.
Know how to manage trading risks with risk management strategies.
Stay updated on US data, global events, central bank updates and any shifts in the US Dollar’s strength by following PU Prime’s market insights and daily financial news.
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