higher lows

Black line- support trend line The USDCHF pair has been in a strong uptrend since May 3rd 2023, forming higher highs and higher lows on the 4 hour chart. The pair has also been respecting the rising trend line that connects the swing lows of the uptrend. The RSI indicator has been mostly above the 50 level, indicating bullish momentum. The pair has recently tested the 0.9146 resistance level, which coincides with the 61.8% Fibonacci retracement level of the previous downtrend from 0.9336 to 0.8818. Today price is under pressure after making a lower high at 0.9118. If the pair breaks below the support trend line at 0.904, it may signal a reversal of the uptrend and a possible retest of the lower Fibonacci retracement levels of 0.916 and 0.8940. The RSI may also fall below the 50 level, indicating bearish momentum. Traders need to be cautious as the trading week started with a higher high than Friday's high and price is now into negative territory suggesting a possible reversal is close.

Saudi Arabia commits to extending voluntary cut of 1 million bpd Russia to reduce oil exports by 500K bpd US Manufacturing Activity drops the most in 3 years Oil The bottom is in place for oil after the Saudis and Russians play nice. The oil market got a boost after the Saudis extended their production cuts and Russia surprised everyone with an export cut announcement of 500,000 bpd. The Saudi extension should have been expected by everyone, but the Russian export cut news did surprise many energy traders. Russian oil exports hit pre-war levels in April and Asian demand kept on taking advantage of the Russian discounts. Russia has hardly been crippled by Western sanctions as they have been able to sell its crude to India, China, and Turkey. WTI crude seems poised to make some higher lows here even if a stronger dollar emerges on fears the Fed will be taking rates much higher. OPEC+ is saying what it needs to keep supplies tight, whether they, the Russians follow on those pledges is another story. The global growth outlook won’t be improving anytime soon given the latest global PMIs, but the US and China outlooks should remain upbeat for the next few months. US economic resilience will likely remain before we see the slowdown and China will steadily provide more support to their economy. Given the shortened trading day, oil price gains might be limited until after the July 4th holiday. WTI crude pared back some gains following a softer ISM manufacturing report.

Red lines- bullish channel yellow rectangle- double bottom support Oil price is trading above $91 once again. Price formed a double bottom at $88 and bounced strongly upwards. Medium-term trend remains bullish as price continues forming higher highs and higher lows inside the red upward sloping channel since June. Recent price action has confirmed the importance of the $88 support level. A break below this level will be a sign of weakness and will most probably push price towards the lower channel boundary at $86 at least. Bulls remain in control of the medium-term trend and for now of the short-term trend as well.

USDCHF Pair Tests Resistance Level Amidst Uptrend, Watch for Reversal Signals

USDCHF Pair Tests Resistance Level Amidst Uptrend, Watch for Reversal Signals - 05.06.2023

Saudi Arabia Commits to Extended Production Cut, Russia Reduces Oil Exports; US Manufacturing Activity Drops

Oil Price Surges Above $91 as Double Bottom Support Holds

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