U.S. employment report and optimism in Europe continue to support oil

Oil continues to recover in the commodities market in New York with the opening of the trading week. Since oil prices dropped to its long-term support level of USD 75.00 a barrel early last week the black gold is trading with an increase of over 10%. There was a surge in oil prices due to significant optimism in the euro area following Trichet's speech last Thursday and because of encouraging U.S. employment figures last Friday. The price of a barrel of oil was standing this morning at USD84.00 in Nymex exchange. If this trend continues in the near term oil may once again move towards its next resistance level against the USD at USD 90 a barrel.

10-10-2011 oil 8hour

EUR-USD - 1.3520
Increase in oil prices comes in direct proportion to the weakness of the USD at the opening of the week’s trading  despite encouraging employment reports released last Friday that surprised investors with the addition of 103 thousand new jobs, compared to expectations of only 55 thousand. Despite the encouraging reports the USD continues to decline as optimism in the euro area improves following Trichet's speech last Thursday causing the Euro to strengthen against the USD. The Euro is currently trading at USD t 1.3520, continuing the trend of recovery in recent weeks since the Euro dropped to its level of support of USD 1.3160 ​​ a week ago. The next resistance level of the USD is -1.3700.

10-10-2011 EUR-USD 4hour

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