- The crude oil market has pulled back just a bit during the trading session on Thursday, showing signs of exhaustion after the huge push higher on Wednesday.
- With that being said, I think we still have to look at this through the prism of a market that got out of its mind for a while, only to turn around and fall towards the previous resistance.
- I also recognize that the traders are going to have to understand that Thursday is only half a day. Friday is only half a day because of the Independence Day holiday in the United States. So, there won't be a lot of business conducted.
The Importance of $65
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That in and of itself could cause some issues, but the $65 level, I think, continues to be an area that you have to watch due to the fact that it was previous resistance, and it should now act as support. And in fact, has so far, while it wasn't overly impressive for several days, if you've been watching me here at Daily Forex, you know that I said the massive shot higher followed by the crash lower, that was just sitting still was actually a bullish sign.
I think it still is, but the next 36 hours and then the weekend. I don't think the move higher is going to be as explosive as the one before it obviously, but we are at that time of year. We're typically oil tends to grind higher due to usage. The employment numbers on Thursday probably had people a little bit nervous that the Fed wasn't going to cut, but it's only a matter of time before they start to think that more jobs in America means more demand for fuel. So, I think we are going higher. I just think it's going to be a grind. Patience will be paramount here.
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