WTICurrent market conditions show trend continuation signals across multiple timeframes, with key levels identified for potential entries and targets.
USOUSD trade ideas
CRUDE OIL (WTI): When the Gap Will Be Filled?
I strongly believe that a huge Monday's gap will be filled.
The confirmation that I am looking for is a breakout of a resistance
line of a horizontal range on a 4H.
4H candle close above the yellow structure will indicate
the strength of the buyers and make the market finally start rising.
❤️Please, support my work with like, thank you!❤️
Crude Oil Price Review: Bullish Correction AheadThe recent bearish gap in crude oil prices could be setting up for a bullish correction, as technical indicators highlight key target areas for a rebound, signaling a potential upward trend.
The Commitment of Traders (COT) report supports this outlook if large institutional players are increasing long positions, adding to the bullish momentum.
Historical US election trends also play a role, as policy shifts related to energy can drive expectations of higher demand, which often leads to upward price adjustments.
Meanwhile, upcoming economic data, including the US PCE index, jobs report, and manufacturing PMI, will influence this trajectory, with higher-than-expected inflation possibly leading to rate hikes, which could temper growth and suppress oil demand.
However, should these indicators point to economic resilience, it would bolster the case for a rally, feeding into a narrative where crude oil prices might see a short-term climb in anticipation of both policy impacts and resilient demand.
USOil WTI Technical Analysis and Trade Idea👀👉 US Oil has encountered recent selling pressure, which may present an opportunity for short-term traders. In this video, we’ll analyze the price action, evaluate the current trend and market structure, and explore potential sell setups if the price action unfolds as outlined. Risk Disclaimer: Forex trading involves significant risks, and market conditions can change unexpectedly. This content is for educational purposes only and is not financial advice. 📉✅
Crude Oil WTI, final leg downWTI in the final leg towards long term support (62$). Around that price level, you can find multiple prior lows, the lower Mogalef volatility band, the YTD VWAP 3 SD band, and very oversold levels
Note that below that support level, there's nothing stopping the price from going down to the 43$ level, as very little volume was traded in the 40$ to 60$ range and there's no strong pivot points.
Please share your thoughts!
WTI - How will oil react to the elections?!In the 4H timeframe, oil is below the EMA200 and EMA50 and is moving in its descending channel. In case of rising due to increasing tensions, we can see the ceiling of the channel and sell in that range with appropriate risk reward. If the downward trend continues and the support range is broken, you can buy oil at the bottom of the downward channel.
Under President Joe Biden, U.S. oil and gas production has reached new records, and the outcome of the U.S. election is unlikely to significantly impact commodities like energy in the short term. Analysts at Capital Economics believe that the election result will have minimal influence on most commodity prices over the next few months.
However, differences in candidates’ views on vehicle greenhouse gas emissions, liquefied natural gas (LNG) exports, and foreign policy toward Iran could notably impact oil and gas prices over the next five years.
The CEO of Goldman Sachs stated that the U.S. economy is very resilient, expressing concerns over global inflation, spending, and the U.S. budget deficit. He advised focusing on the long-term interest rates in the U.S.
Solomon emphasized the importance of U.S. long-term interest rates and mentioned that the Federal Reserve will base its 2025 decisions on economic data. He also noted that geopolitical impacts on Goldman Sachs’ business are minimal but voiced concerns about geopolitical tensions in the Middle East.
Yesterday, Saudi Arabia’s energy minister announced that the country remains committed to maintaining a production capacity of 12.3 million barrels of crude oil per day.
In Q3, British Petroleum (BP) reported a net profit of $2.3 billion, exceeding analysts’ expectations. This compares to $2.8 billion in Q2 and $3.3 billion in Q3 2023. BP shares have declined by over 14% since the start of the year.
BP is also targeting new investments in the Middle East and the Gulf of Mexico to boost oil and gas production. A BP spokesperson stated that the company will continue as a simpler, more focused, and higher-value entity. Other oil companies like Shell and Total are also preparing to release their quarterly reports shortly.
What Is a Petrodollar and How Does It Affect the Global Economy?What Is a Petrodollar and How Does It Affect the Global Economy?
The concept of petrodollars is an insightful topic to study. The petrodollar isn’t a specific currency but a financial system that reflects economic and political forces that have shaped international relations for decades. This concept is critical to understanding global trade dynamics and geopolitical strategies.
Petrodollar: Definition and Origins
A petrodollar refers to the US dollars earned by oil-exporting countries through the sale of oil to other nations. The term gained fame in the 1970s, a period marked by significant changes in the global economic landscape, particularly concerning energy resources and currency stability.
Historical Context
The petrodollar system received a significant boost in development as a result of economic necessity and geopolitical strategy during the turbulent 1970s. Key historical events, such as the collapse of the Bretton Woods system, the 1973 oil crisis, and the US–Saudi agreement, set the stage for the creation of the term ‘petrodollar’. These events emphasised the importance of securing stable economic fundamentals in the face of global uncertainty.
Bretton Woods Agreement
The Bretton Woods Agreement, established in 1944, created a system of fixed exchange rates anchored by the US dollar, which was convertible to gold. This system fostered post-war economic stability. The Bretton Woods Agreement led to the formation of the World Bank and the International Monetary Fund. The system eventually collapsed in 1971 when President Richard M. Nixon ended the dollar’s convertibility to gold. This collapse left the global economy searching for a new anchor.
1973 Oil Crisis
In 1973, the Organisation of Arab Petroleum Exporting Countries (OAPEC) declared an oil embargo against the US and other Western countries that supported Israel during the Yom Kippur War. The embargo prohibited oil exports to target countries and led to a reduction in oil production. The immediate impact was a sharp increase in oil prices. This crisis underscored the strategic importance of oil and prompted economic shifts.
US–Saudi Agreement
On 8th June 1974, Saudi Arabia entered into an agreement with the United States to accept dollars as the sole payment currency for its oil in exchange for the countries’ bilateral cooperation and US military support to the Saudi regime. This so-called ‘petrodollar agreement’ virtually pegged the value of the US dollar to global oil demand and ensured its continued dominance as the world’s main reserve currency.
Mechanisms of the Petrodollar System
The petrodollar system refers to the practice of trading oil in US dollars, as well as the broader arrangements that support it. Let’s see how it is manifested.
Oil Purchases
Global oil sales are predominantly in US dollars, regardless of the buyer or seller’s country. This practice means that countries buying oil must hold dollar reserves, which creates a constant global demand for dollars. This supports the currency’s value and gives the US significant influence over global financial markets. As a benefit, uniformity reduces currency risk and transaction costs.
Oil Sales
The settlement of oil transactions involves the transfer of dollars through international banking systems, although US banks are the most predominant. The US can exert economic pressure by restricting access to the dollar financial system, effectively imposing sanctions on countries.
Recycling of Petrodollars
Petrodollar “recycling” refers to the way oil-exporting countries utilise their oil revenue. These countries spend part of their oil revenues on foreign goods and services and save another portion as foreign assets. These assets can include deposits in foreign banks, bonds, and private equity investments. Ultimately, the foreign exchange earned by oil exporters from increased oil exports flows back into the global economy, hence the term “recycled.”
Economic and Political Implications
The petrodollar system has profound implications for the global economy and geopolitics.
Global Trade and Geopolitics
The petrodollar system standardises oil pricing, simplifies transactions, and reduces exchange rate risks for oil-importing countries, thereby facilitating smoother international trade flows. The petrodollar system cemented the relationship between the United States and Saudi Arabia, along with other oil-producing nations, forming a strategic alliance that would influence global politics for decades.
Oil-Exporting Countries
Oil-exporting countries reinvest revenues into exploration, drilling, and infrastructure projects, boosting oil production and driving technological advancements. Additionally, petrodollars allow oil-exporting nations to invest in the domestic economy and stimulate domestic growth.
US Economic Influence
The petrodollar system increased global demand for the dollar, solidifying its status as the world’s primary reserve currency. Oil-exporting countries holding large reserves of US dollars invest them in US government securities, which support the US economy. The demand for US dollars maintains a favourable trade balance for the United States. Oil transactions increasing the global circulation of dollars support US exports.
High dollar demand ensures ample liquidity in the forex market, making it the most widely traded currency. If you are interested in trading currencies such as the US dollar, explore popular USD pairs on the TickTrader platform.
Criticisms and Challenges
While the petrodollar provides economic and geopolitical advantages, it also exposes countries to a number of risks and challenges.
Economic Disparities
Critics argue that the petrodollar exacerbates global economic inequality. By concentrating economic power and benefits in the hands of a limited group of oil-exporting countries, it perpetuates inequality and prevents more equitable economic development. This concentration of wealth and influence often puts poorer countries at a disadvantage, as they find it difficult to compete on a world stage dominated by petrodollar transactions.
Dependency and Vulnerability
The petrodollar system also creates dependencies:
1. Oil-importing countries must maintain dollar reserves, potentially exposing their economies to changes in the USD rate.
2. Oil-exporting countries invest heavily in the US economy and financial instruments, making them vulnerable to economic fluctuations and potential restrictions by the US, such as sanctions.
3. The US economy profits from the capital inflows, as they help finance the federal budget and support economic growth. Reduced inflows may negatively impact the US economy.
4. Changes in geopolitical alliances, regional conflicts, and economic policies can impact the stability and future of the petrodollar system. The collapse of the petrodollar could have serious consequences for the US and global economy.
Future of the Petrodollar
The future of this system is uncertain, especially with the changing geopolitical landscape. Saudi Arabia has opted to terminate the 50-year petrodollar agreement with the US, and it expired on June 9, 2024, which was referred to as the end of the petrodollar in the news.
This agreement has been the cornerstone of the petrodollar system, and its expiration marks a significant shift. It means that oil will be traded in multiple currencies, including the Chinese yuan, euro, yen, and potentially digital currencies like Bitcoin. These efforts reflect a growing desire to reduce dependency on the dollar and diversify economic risks.
These changes may contribute to a more balanced global economic environment by weakening the influence of the dollar, creating a more multipolar currency system, and providing countries with greater financial autonomy.
Another threat to the oil-US dollar system is that countries seek sustainable energy alternatives and new economic alliances emerge. In particular, the shift to renewable energy could reduce the world’s dependence on oil, thereby decreasing the centrality of the traditional energy system and the US dollar, causing a reassessment of the existing order.
Final Thoughts
The petrodollar, born out of historical necessity and strategic agreements, may no longer be a cornerstone of economics and geopolitics. As global energy and financial systems evolve, the role of the petrodollar has become the subject of critical analysis and debate, and the recent termination of the US–Saudi agreement is a prime example of the changing economic and geopolitical landscape.
Changes may lead to revaluation of various currencies and market volatility. Those who are interested in catching market volatility and trading on news events, can open an FXOpen account and start trading various USD pairs.
FAQ
What Is the Petrodollar?
The petrodollar is the name of the system that reflects US dollars earned by a country through the sale of its petroleum to other countries. This term highlights the relationship between global oil sales and the US dollar.
When Was the Petrodollar Created?
The petrodollar concept was created in the mid-1970s. The turning point came in 1974 when the United States and Saudi Arabia reached an agreement that oil prices would be set exclusively in US dollars. This agreement followed the collapse of the Bretton Woods System and the 1973 oil crisis.
Why Is Oil Only Traded in Dollars?
Currently, oil is not only traded in dollars. Some oil-exporting countries use their national currencies, and the euro and Chinese yuan may be widely used for oil trading in the near future. Oil was traded in dollars mainly because of the 1974 US-Saudi agreement. It created a standard currency for oil transactions and reduced exchange rate risks. But since the agreement was terminated in June 2024, other currencies may become more common in oil transactions.
Is the US Dollar Backed by Oil?
No, the US dollar is not backed by oil. Since the end of the Bretton Woods System in 1971, no physical commodity has backed the dollar. However, the petrodollar system creates a close link between the dollar and the global oil trade, maintaining the value of the dollar through constant demand for it in international markets.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Potential bullish reversal?USO/USD is reacting on the support level which is a pullback support that aligns with the 127.2% Fibonacci extension and could rise from this level to our take profit.
Entry: 67.63
Why we like it:
There is a pullback support level that aligns with the 127.2% Fibonacci extension.
Stop loss: 65.52
Why we like it:
There is a pullback support level .
Take profit: 70.16
Why we like it:
There is a pullback resistance level that lines up with the 50% Fibonacci retracement.
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WTI SellI shared 2 days ago big picture about WTI. And I would like to buy from ~66,30. There is a gift from ~63,30 second buy point. Now I am going to sell from ~73.00 but I will watch ~71,50 point.
CRUDE OIL Potential Long! Buy!
Hello,Traders!
CRUDE OIL made a huge
Gap down recently and
The price has almost
Reached a horizontal
Support of 66.50$
From where we will be
Expecting a local
Bullish correction
Buy!
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Inside Day Breakout Continuation setup taken with Silver todayIn this video, I walk you through my entire thought process during today's trading session. You'll learn how I selected the pairs and executed three key trades:
* WTI Breakdown Continuation
* Silver ID Breakout Continuation
I'll also provide a detailed explanation of the ID breakout setup, helping you understand how to apply this strategy in your own trading. Don't miss out on these valuable insights and tips!
Crude oil - selling pressure again?
Crude prices were firmer in early trade this morning, making back a proportion of yesterday’s sharp losses. The jump came after the US said that it plans to purchase crude oil to replenish its Strategic Petroleum Reserve. But the gains so far fall well short of what’s needed to take crude back to Friday’s close which saw front-month WTI trading close to $72 per barrel. Oil gapped lower as it reopened on Sunday night as details emerged of Israel’s retaliation for Iran’s missile bombardment earlier this month. Israel’s attack focused on military targets, including Iranian air defences, as well as missile and drone production and launch facilities. There was widespread relief that Israel chose not to attack Iran’s oil and nuclear infrastructure, and this in turn could give Iran a way out from taking tit-for-tat measures with all the escalation risk such a move would have. So, with oil supply from the region still unaffected, and global demand growth forecast to slow further, it looks as if the path of least resistance is down, at least in the medium term. Front-month WTI could be in the process of completing a near-text book head and shoulders pattern, particularly if prices were to retest the September lows around $65.
WTI Oil H4 | Potential bearish breakoutWTI oil (USOIL) is falling towards a potential breakout level where the bearish momentum could drive it lower.
Sell entry is at 67.16 which is a potential breakout level.
Stop loss is at 68.20 which is a level that sits above the 23.6% Fibonacci retracement level and a pullback resistance.
Take profit is at 65.64 which is a swing-low support.
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Please be advised that the information presented on TradingView is provided to FXCM (‘Company’, ‘we’) by a third-party provider (‘TFA Global Pte Ltd’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by TFA Global Pte Ltd.
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WTI CRUDE OIL: 1H Death Cross suggests another Low is coming.WTI Crude Oil is bearish on its 1D technical outlook (RSI = 42.281, MACD = -0.560, ADX = 26.062) with the bearish bias evident as in the last 3 weeks the price is trading inside a Channel Down. The formation of a 1H Death Cross earlier today, draws comparisons with the October 15th one. Both price actions found a temporary support on the 1.382 Fibonacci level at the time of the Death Cross but the 1H RSI was rebounding on a bullish divergence. We expect the price to extend replicating that bearish wave and approach the 1.618 Fib eventually (TP = 66.00).
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Risk-on Risk-off Report, October 29, 2024October 29, 2024. Market sentiment reflects a cautious risk-off environment. Factors contributing to this include ongoing geopolitical tensions, such as the Israel-Gaza conflict and Russia-Ukraine situation, which increase market volatility and drive investors toward safe-haven assets.
Currency Movements and Bond Yields:
Safe-Haven Currencies: The Japanese yen (JPY) and Swiss franc (CHF) have strengthened, typical in risk-off periods. The U.S. dollar (USD) remains strong, especially against risk-oriented currencies like the Australian (AUD) and New Zealand dollars (NZD), which have weakened as investors avoid riskier markets.
High-Yielding Currencies : Commodity currencies like the CAD, AUD, and NZD are currently facing selling pressure, reflecting an overall aversion to risk in forex trading. This is evident in the downtrend for AUD/USD, with further bearish sentiment expected as investors shift focus away from risk assets.
Bond Yields : Short-term bond yields in the U.S., Canada, and other developed economies remain high but are starting to plateau due to concerns about long-term economic stability and potential adjustments in monetary policies. Japan’s Bank of Japan has hinted at possible rate normalization, which could see gradual rate increases ahead.
Commodities:
Gold: Demand for gold, a traditional safe haven, has increased, buoyed by both its safe-haven appeal and an anticipated easing in U.S. rates. The commodity’s upward trend is expected to continue, especially if risk aversion remains high.
Crude Oil and Natural Gas : Crude oil prices have been volatile but are somewhat supported by constrained OPEC+ production. However, natural gas prices face downward pressure from a supply overhang in the U.S. and subdued global demand.
Stock Indices:
Global stock indices, including those in the U.S. (S&P 500), Europe (DAX), and Japan (Nikkei), are under pressure. The U.S. indices, in particular, are vulnerable to declining earnings outlooks and inflation concerns, making them less attractive amidst risk-off sentiment. Japanese markets reflect a similar pattern, affected by both local and global risk factors.
Crypto Market:
The total crypto market cap is facing headwinds, with limited upward momentum in Bitcoin and other leading cryptos, as investors remain cautious about volatile assets during risk-off periods. Meme coins, known for their speculative nature, have seen reduced interest.
Influential News and Events:
The Forex Factory economic calendar lists significant upcoming central bank announcements and economic data releases, with the Federal Reserve's stance on rate cuts closely watched. Bank of Japan board members have also hinted at a gradual approach to rate normalization, reflecting heightened caution in economic adjustments. In addition, global geopolitical issues, especially in the Middle East, are adding uncertainty, bolstering demand for safe-haven assets like USD, CHF, and JPY.
Disclaimer: This is not financial advice. The information provided is for general informational purposes only and should not be interpreted as financial or investment advice. Always consult with a professional financial advisor before making any investment decisions.
BUY OILCrude oil is giving us a buying opportunity. Targets 70.000 stops 67.284 use proper risk management.
BUY CL / USOILBeen a while since I last posted a trade, today I'm sharing with you this trade on CL / USOIL, you can but at the level showing on the chart, SL and TP take the same ones as mine.
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USOILUSOIL seems like it might complete this bearish wave and start going long. Look out for a bounce around these support areas. WAIT for price to respect and give breakout. It's a big move no need to catch the reversal. Overall we are in a complex correction. For now we are completing a linking structure normally it will retrace the previous move by 1.2 - 1.618
USOIL BULLS ARE STRONG HERE|LONG
Hello, Friends!
It makes sense for us to go long on USOIL right now from the support line below with the target of 71.76 because of the confluence of the two strong factors which are the general uptrend on the previous 1W candle and the oversold situation on the lower TF determined by it’s proximity to the lower BB band.
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USOIL BEARISH BIAS RIGHT NOW| SHORT
Hello, Friends!
We are now examining the USOIL pair and we can see that the pair is going up locally while also being in a uptrend on the 1W TF. But there is also a powerful signal from the BB upper band being nearby, indicating that the pair is overbought so we can go short from the resistance line above and a target at 68.29 level.
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WTI creates a price gap, room for price declineTVC:USOIL dropped sharply in the Asian trading session today, October 28, at press time WTI crude oil maintained a decrease of 3dollars on the day, equivalent to 4.18% and is currently trading at 68.6USD/barrel.
The current risk aversion in the geopolitical situation has subsided. Israel's weekend retaliatory strike against Iran bypassed Tehran's oil and nuclear infrastructure without disrupting energy supplies, easing geopolitical tensions in the Middle East and further weakening pressure on the supply side, at the same time causing disadvantages for rising oil prices.
With the US election approaching and demand expected to show no signs of recovery, some fundamental pressures have returned, causing the energy market to fall into a negative state again.
Technically, on the daily chart of TVC:USOIL It created a GAP jump right at the opening of trading earlier this week and recovered slightly from the upper edge of the price channel.
Although WTI crude oil recovered, it still has not reached the closest support level with the target of around 67.14 - 66.44USD, so WTI crude oil still has the ability to fall further before "filling the GAP".
Usually, price gaps are filled, but this is sometimes not immediate, it can happen over the next one or more months, the important thing in trading is that it depends on the trend.
WTI crude oil has been under pressure from the EMA21 moving average. Note to readers in the previous issue of WTI crude oil, along with that, the Relative Strength Index broke down from the 50 level, showing that The downside potential is very wide and the slope of the RSI also shows a huge downward momentum.
Technically, WTI crude oil has enough pressure to decrease in price with main resistance at EMA21 and the 0.236% Fibonacci retracement level. Along with the downtrend, notable technical levels of WTI crude oil will be listed as follows.
Support: 67.14 – 66.44USD
Resistance: 68.59 – 69.73 – 70.56USD
USOIL - SELL Wait for a break and close below 71.45. This helps confirm the market's direction and minimizes the risk of false breakouts.
US-Oil will further push upside After Testing TrendlineHello Traders
In This Chart XTIUSD HOURLY Forex Forecast By FOREX PLANET
today XTIUSD analysis 👆
🟢This Chart includes_ (XTIUSD market update)
🟢What is The Next Opportunity on XTIUSD Market
🟢how to Enter to the Valid Entry With Assurance Profit
This CHART is For Trader's that Want to Improve Their Technical Analysis Skills and Their Trading By Understanding How To Analyze The Market Using Multiple Timeframes and Understanding The Bigger Picture on the Charts
