The drop continues on oil

WTI oil continues dropping and that has pushed the US Dollar even higher, especially against emerging markets currencies. The price of WTI oil has reached a low at the 42.00 round number level and it stalls momentarily at that zone, but it may continue dropping. The next support on oil could be the 41.00 level. To the upside, we can see on the daily chart that any of the round number levels like the 44.00, the 46.00, the 47.00 or the 48.00 could act as resistance, but a more relevant resistance could be the 200 day EMA, blue line, around the 48.83 level. On the other hand, we can see on this same chart that the commodity is overextended to the downside and it could be getting ready for a more pronounced bullish correction.