Dollar strength and oil return gains are factors
Looking at the oil market over the past few weeks, there has been a clear tendency to sell early in US trade only for buyers to come back late in the day.
This model fits specs selling at the most liquid time and refiners buying dips, but you could argue that producers are hedging themselves with high cash, even though they’ve been squashed by the hedges this year.
Either way, this is a trend to continue to watch with Oil falling to $ 84.70 from a recent high of $ 85.38.
The US dollar is also widely offered as risky trading falters. USD / CAD attempted Friday’s high at 1.2390 but was pushed back at first glance. This area around 1.24 has proven to be a tough resistance over the past week, but it has also been impossible to get any downside momentum despite the energy and commodity declines.
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