Today’s Spot Crude Oil Trading Support and Resistance Levels
March 19th, 2010 Posted in Oil and Precious Metals
Spot crude oil prices slipped in yesterday’s trading after the dollar rose and traders took profits helped to send the price of the commodity lower. Crude oil traders were selling after the price of spot crude oil recently rose to its highest price in two months. This has left spot crude oil with two major support and resistance levels
The price of spot crude oil fell to $82.21 after opening the day at $82.75. This was down from the commodity’s two month high that was reached on Wednesday.
Driving the price of spot crude oil lower was a rising U.S. dollar. Because crude oil is traded in U.S. dollars, a strengthening dollar makes it more expensive to buy the commodity. Helping to push the dollar higher were reports that Greece would be forced to turn to the International Monetary Fund for support. The dollar also was bolstered by speculation that the Federal Reserve will increase its discount rate sooner than expected.
An overextended market may have also helped to push down the price of spot crude oil. Traders took profit from the market as the price of spot crude oil may have gotten ahead of itself. The price rose $2.30 in only a two day period. This may have been a situation where the commodity appreciated simply too fast.
A lack of major economic data on the calendar today could leave spot crude oil trading susceptible to movements in the EUR/USD. This could mean further declines for spot crude oil prices. The next major support level for spot crude oil rests at $81.25. However, if the EUR/USD rises today, we could see spot crude oil prices test the resistance level of $83.90.
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Tags: Crude Oil Resistance Level, Crude Oil Support Level, Forex Trading, spot crude oil, spot crude oil prices, spot crude oil trading
