Oil Continues to Climb as USD Falls

Oil continues its journey to recovery and is trading at a month’s peak at the opening of the trading week. This is due to the weakening of the USD and optimism in the markets brought with it a rise in the stock markets around the world. At the end of trading last Friday the price per barrel increased by 3.1% to USD86.80 in the New York commodity exchange, after the publication of encouraging retail sales data from the U.S. averted the fear of a sharp drop in demand for oil. Now the black gold continues to climb Nymex Stock Exchange and the price of barrel of oil was a level of USD87.90, which is the level of resistance to the USD for the short term. If this trend continues the black gold may reach up to the next resistance level of the USD at USD90 a barrel.

17-10-2011 oil 8hour


Euro - Dollar - 1.3870
Approval of an additional aid package providing a life line to the economy of Greece continues to support the European currency slowly approaching to the USD1.40 line which supports the black gold. Last Friday, the final report published in the CPI for September, when the index recorded an annual increase of 3.0%, as expected, while the core CPI surprised with an increase of 1.6% in September compared to a forecast of 1.5%. The figure increases slightly the chance that central Bank Governor Trichet, will consider raising interest rates further. This also supports the Euro and  as stated now trades at USD 1.387, as it continues to rally for more than two weeks against the greenback. The next resistance level following the dollar is still pretty far away and is located at -USD1.4500.

17-10-2011 EUR-USD 8hour

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