Forex: Commodity pairs rally on oil declines
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DiggFXstreet.com (Barcelona) – Commodity pairs are rising today's American session on the back of oil barrel is declining below $70.00. AUD/USD has jumped above 0.8400 level, NZD/USD trades at daily highs, USD/CHF has fallen quickly to trade below 1.0600. Dollar is under pressure, Pound and Euro are rising at strong pace against the Greenback.
Oil barrel has fallen below $70.00 level after declining 3.85% so far today from opening price to the current 69.93. Gold is declining too, the commodity is trading close to 951.50 after easing 0.75%.
Sam Shenker, analyst at TradeTheNews, comments that oil could fall to 65.00 level: “As contracts head lower a break below 70.00 will encounter 50-day SMA at 69.49 with further key support seen 68.13, a confluence of 23.6 Fib of the 44.87-75.32 Oil rally and August monthly pivot low set on August 17 at 67.42. A sustained momentum to the downside will likely see the crude challenge bids around 66.75, an upward sloping trendline that dominated the price action since February, with confirmed breakout seeing contract testing support around 65.00 figure, a level marked by the July 28 intraday pivot low. Indicators are mixed with 20-day SMA remaining above 50-day SMA continues to point to bullish trend with 200- day SMA providing long term support at 60.70. Stochastic issued a strong sell signal with bearish crossover below the oversold line and bearish divergence has appeared on the daily chart. MACD issued a sell signal with bearish crossover above the zero line.”
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