Forex Today: WTI Crude Oil at 2-Year High

Adam Lemon

WTI Crude Oil reaches a new multi-year high price just below $70.

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Oil prices are making great trade opportunities

  • WTI Crude Oil traded Friday at a new 2.5 year high price just below $70 per barrel. Analysts tend to see OPEC positivity on demand prospects and falling U.S. oil stockpiles as helping to push the price up.
  • Global stock markets, especially in the U.S. and Europe, continue to look bullish, with the German DAX Index trading at a new all-time high last Friday.
  • The Forex market is very quiet due to it being a Monday with a very light data release schedule, with generally indecisive price action seen in the major currency pairs. The strongest trends right now are in more minor currencies such as the South African rand (bullish) and the Turkish lira (bearish).
  • Cryptocurrencies are continuing to stabilize, seemingly having bottomed out after falling very sharply two weeks ago. Key support areas to watch are $30k for Bitcoin and $2k for Ethereum. These cryptos may be worthwhile buys if they bounce at these levels, but if the levels are fully broken, that will be a very bearish sign. If Bitcoin breaks below $30k, it could easily reach $20k quickly. Interestingly, Ethereum is holding up better and looking more bullish than Bitcoin.
  • Last week saw a fifth consecutive weekly fall in global new confirmed coronavirus cases and deaths, suggesting that the current wave of the pandemic is starting to retreat. The effects of the vaccination programs in the most developed economies are now being felt.
  • Total confirmed new coronavirus cases worldwide stand at over 174 million with an average case fatality rate of 2.15%.
  • The fastest progression in terms of immunizing a population against the coronavirus in all but the smallest states have been in Israel and Bhutan, which have given at least one shot to 63% of their entire populations, followed by Canada at 61% and the U.K. at 59%. For most of the world, a vaccine still remains distant. However, the pace of vaccination in the European Union, which now has immunized 41% of its population, has picked up significantly. In the U.S., 51% of the population has been vaccinated.
  • Despite the high levels of vaccination in the U.K. there is increasing concerns as new confirmed cases are rising there, leading to speculation that an easing of restrictions scheduled for 21 June will be delayed.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Afghanistan, Algeria, Bangladesh, Cambodia, Chile, Colombia, Dominican Republic, Fiji, Guatemala, Haiti, Kuwait, Malaysia, Mongolia, Oman, Philippines, South Africa, Sri Lanka and Tunisia.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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