On the chart, oil has formed a ‘double top,’ failing to raise above $93 at the start of the week. And now, the $83 level, where the previous support area is located, is worth paying more attention to. A fall below that would confirm the pattern, suggesting a possible target in the $85 area.
We have the critical levels of 1750-55 as support and 1785-90 as resistance, which the price will attempt to target in our view.
Although the structure is bullish at the moment we wouldn’t want to go long unless we get a deep pullback, which we would like to see during the week. That higher resistance level needs to hold for the price to resume some form of correction.
For the next week, there are two points a consider
*I'll go to wait until the price takes out the supply zone with breaking close of the body above or the opposite below the demand zone
*If DXY maintains its uptrend in the market and if we see that on Monday and Tuesday DXY starts going up again just like the previous times and breaks the 107.500 level then again...
For the next week, I expect the price to reach the resistance level at 1.01370.
Then we need to know if the price will close today above 1.01334 which means the price has tested this previous support as resistance.
Next week we need to wait for the price to move around 1.01200 and then it will drop below the 1.01500 resistance to reach the lower levels of...