The Oil market is on the back foot at present after a large decline on Friday from the highs at $67.00. The selloff came in advance of the OPEC meetings this week where production cuts are to be discussed. Trade negotiations with the US are also affecting the price of the pair along with Economic data from both countries and the Fed’s path of rate hikes. The market broke higher from the falling blue trend line on Thursday around 1.30450 with a strong move that continued into Friday’s trading session. The high reached this morning was 1.32063 with prices currently just off the highs. Resistance is found at the black rising trend line at 1.32630 with the 1.33000 level beyond.
Support for the pair comes in at 1.31240 followed by 1.31000 and the 1.30700 level. The falling blue trend line that was broken on Thursday is currently positioned at 1.30428 and a retest of this line should be supported particularly by the 1.30000 level. The 50 DMA is found at 1.29000 and a loss of this level puts the uptrend under a little pressure. The 100 DMA and 200 DMA should add strength to the 1.28000 level on any decline. There is strong support in the 1.27243 area and a drop under this line can see 1.26000 or 1.25000 tested.
