Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.
toc-menu-hamburger.png
table of content

Table of Contents

toggle-toc.png

Crude Oil Price - July 5, 2013

The WTI Crude Oil markets did very little during the session on Thursday, as one would expect as the Americans celebrated Independence Day. Because of this, it's very difficult to garner any real information from the daily candle, especially considering the fact that the Egyptian military has taken control again after the markets closed on Wednesday.

A lot of this reaction has been to the concerns of the Suez Canal closing, as the Egyptian political situation gets more and more murky. However, it seems to me to be almost impossible to imagine Egypt trying to shed on the Suez Canal, simply because it is roughly the only way they're going to make money anytime soon anyways. Tourism is all but dead in Egypt, and as a result the money brought in by the Suez Canal is absolutely vital at this point.

Crude Oil Chart July 5

Waiting for the selloff

For me personally, I believe that this knee-jerk reaction has been way over done, and it's only a matter of time before the market sells off again. The US dollar continues to gain in value overall, and because of that I will be looking for a resistive candle to start selling this market. In fact, I may even drill down to the four-hour chart in order to place that trade.

I'm not looking for some type of meltdown, just simply a move back below the $100.00 level at the very least. In my opinion, it would not be surprising to see this market fall back into the previous consolidation area, and that could mean a much lower level. However, there is no guarantee at this point in time so I am being somewhat patient to look for my sell signal going forward.

As long as a US dollar continues to strengthen overall, this market will be under pressure as it is of course priced in US dollars. Over the longer term, there is a negative correlation between the currency and the market, and I believe that sooner or later we will go back to that correlation again. Because of this, I am patiently waiting to sell.

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

 

Most Visited Forex Broker Reviews