Incredible rally on light crude oil

The December contract for light crude oil rallied for today to the 46.00 zone after the oil inventories came out lower than expected. This has caused traders to close their short positions rapidly, causing a short squeeze. At the moment, the 46.00 level may act as a resistance and oil may try to bounce from that level to the downside, especially because the 55 day exponential moving average is very close to that zone. If the price bounces to the downside, then the 44.00 level may act as support. To the upside, if the price breaks above the 46.00 level, then the bullish momentum may accelerate and oil could go and visit the 50.00 level once again.

EUR/JPY: Possible breakdown below the 133.00 level

The Euro versus the Yen has come back to its bearish trend amid a rise in risk aversion, which has caused the Yen to strengthen. At the moment, the pair is trying to break below the 133.00 round number level and if the breakdown is confirmed then we could see a visit to the 132.00 level. To the upside, if the price goes back above the 133.00, then the 134.00 could act as its next resistance.

Possible breakdown from the 44.00 level on light crude

The 44.00 level has been a very good support for light crude oil since the end of August and even though the price has tried to break it to the downside, it has always bounced back to the upside. However, oil has had a very good sustainable downtrend as we can see on the daily chart and it is possible that this time the price is falling with enough force to break below the 44.00 level. If the 44.00 level is breached to the downside, then the bearish momentum may accelerate and the price may try to go and visit the 40.00 level. But if the price bounces from the 44.00 to the upside, then the 46.00 may act as a resistance.

The USD/CHF reaches a resistance zone

The Dollar has been strengthening versus the Swiss Franc due to the fact that if the European Central Bank expands its economic stimulus, then most probably the Swiss National Bank would have to lower its interest rates even more, which are currently already in negative territory. The 0.9800 level could act as a resistance as we can see on the daily chart and from there the price may try to bounce to the downside. However, if the price breaks above that level, then the next round number level of the 0.9900 could act as resistance. To the downside, the 200 day exponential moving average around the 0.9572 level could act as support.

Platinum keeps its bullish trend

Even though the commodities sector has been in a downtrend, platinum has kept a very good bullish trend as we can see on the daily chart. During the last few days, platinum has taken a break after hitting a high at the 1023.87 level, but this consolidation could just be a resting point to continue going higher. If it breaks above the 1023.87 level, the price may find some resistance at the 1035.85. There is also the probability of seeing a retracement to the downside, therefore if the price breaks below the 997.46, the bearish momentum may accelerate.

Volatility with no direction on the EUR/USD

The Euro versus the Dollar has stayed inside a range between the 1.1300 level as support and the 1.1400 as resistance. The lack of fundamental announcements from the Eurozone and from the US has kept the pair much undecided. Tomorrow we have the European Central Bank meeting and speech and probably investors and traders are waiting for this information before taking any bets on the EUR/USD. Even though during the last few days we can see a consolidation on the daily chart, we have actually detected a breakdown of the last bullish trend. However, the price may try to go back up and if it breaks above the 1.1400 level, it may try to go and visit the 1.1500. Below the 1.1300, its next important support could be the 1.1200 level.

Oil keeps its bearish momentum

Oil keeps its downtrend and has entered again the previous consolidation area below its 55 day exponential moving average (purple line). At the moment, crude may find some support at the 45.69 zone, but if it breaks that level to the downside, then it may try to go and visit the 44.00. To the upside, the 50.00 level may continue acting as a resistance.