OIL has recovered from the dramatic events of the previous months with -40 dollar per oil contract. Now, following the dollar demise, oil, that has a negative correlation with the dollar index has been on the rise.
The last month or so have been spent in a range below the strong resistance level in the red, that seems to mirror the current support level in the DXY. If the dollar breaks or holds will pretty much define the fate of oil, and the direction of its trading for the time to come.
Also, the rate of the global economy recovery will have its effects on the oil price too.
Anyway, whichever way the oil goes, the chart above will help you in your trading, as you now see the key levels both up and down.
Trading the breakout up is easier, as the resistance is clearly defined, while there is no precise support level for oil from below, which implies that we will have to look at the price action to get a decent short opportunity.
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