WTI falls as OPEC+ cuts supply

Andrew Fischer · 05 Dec 2023 4.7K Views


Technical Analysis

Bearish Continuation / Upward

Supply Level: 2049.51 – 2043.12

The prediction for Gold today tends toward a decline, creating an anomaly in the market that previously saw considerable highs followed by a substantial drop. Presently, Gold is likely to experience a short-term decline before resuming its upward trend. The prior significant rise in Gold was influenced by renewed conflicts in the Middle East and a notable decline in US bond yields, drawing significant attention to these factors. Today, there will be news on "ISM Service PMI" and "JOLTS Job Openings," both predicted to weaken the USD indirectly. It appears that the US economy and government are currently facing challenges, which might impact these news releases.


Technical Analysis

Bearish Continuation/ Downward

Supply Level: 73.75 – 74.04

The prediction for the movement of Oil tends towards a decline, influenced by OPEC+'s supply reduction and uncertainties surrounding global fuel demand. Despite the risk of supply disruptions due to conflicts in the Middle East limiting losses. Even though the current situation indicates a significant correction, this influence will show a considerable decrease. The OPEC+ production cuts are voluntary, raising doubts about whether producers will fully implement them or not. Investors are also uncertain about how these cuts will be measured. The trend shows the price already at support and corrected; perhaps, after this, it will resume its decline before forming an increase as previously predicted. This prediction and analysis are supported by candlestick analysis and trend analysis.


Technical Analysis

Bullish Reversal / Rise

Supply Level: 146.900 - 146.682

The prediction for the USD indicates a tendency to stabilize and show short-term increases. This influence suggests a slight decline in the Yen, but overall, the trend still demonstrates an upward movement for the Yen. The Yen stands as one of the major beneficiaries of this notion. This currency has sharply rebounded from its one-year low in recent weeks, following the reduced pressure prospects of higher US interest rates. The Yen is holding steady around 146.76 against the dollar, approaching its strongest level since mid-September. Attention is also focused on inflation figures from Japan's capital, slated for release on Tuesday, aiming to gather more potential signals regarding the Bank of Japan's monetary policy plans.

Today, there will be news on "ISM Service PMI" and "JOLTS Job Openings," both of which are predicted to weaken the USD.


Technical Analysis

Continuation Bearish / Downward

Supply Levels: 0.66245 - 0.66187

The prediction for the Australian Dollar suggests a downward trend, yet with the upcoming "RBA Interest Rate Decision," there appears to be a slight inclination towards an increase before resuming the decline. However, this downward movement seems to be short-term, demanding attention. This short-term decline might be advantageous for investors keen on the AUDUSD pair. However, it's essential to note that broadly, there remains a significant upward trend against the Australian Dollar due to the ongoing weakening of the USD. Hence, the decline in the Australian Dollar is expected to be brief. Based on the trend, the projected decrease is only short-term, and the price before hitting support tends to be higher than the support level, warranting careful observation.


Technical Analysis

Continuation Bullish / Upward Movement

Demand Level: 35,806 - 35,956

The prediction for Dow Jones indicates a tendency for continued upward movement, as technically, the price has reached a pivotal point. This signals strength in the Dow Jones Index and presents an opportunity for further advancement after breaking through resistance levels, supported by candlestick patterns. This presents an opportunity for investors favoring the Dow Jones Index. There might be a short-term potential for a decrease in Dow Jones, followed by a potential upward movement once the price hits a support level. Data suggests a weakening of the USD, consequently impacting the rise of the Dow Jones Index.

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