Monday’s session brings so far fourth day of increases on oil in a row – in effect, the US WTI crude oil tested the 52.38 level. The last time we saw price so high was July last year. Below our afternoon market overview.
Picture of the market after the Italian referendum – main topics of the day
Moderate turmoil during Monday’s opening of the market caused by the Italian referendum is behind us. List of most important topics that on December 5 our analysts wrote about on Comparic.pl and Comparic.com :
- The morning market overview – week started with earthquake
- Eurozone PMI at 11-month peaks. What about EUR/USD?
- The latest issue of PROFIT WEEKLY now available!
- Comment rate – Black screenplay Italy
- Gearing up Italexit? Comment rate Societe Generale
- EURUSD – preparing powerful outside bar
- PMI services USA positively surprised. USD Up
Crude defeats this year’s peaks
After last week’s meeting of OPEC, which decided to cut global production, on the WTI.OIL chart we observed continuous growth. On November 30 session started at around $ 45 per barrel – today at the highest point we had to pay extra 7 $.
At this moment we can see that test of peaks from last month at 52.00 area were unsuccessful and the price returned to the round level. Only effective closure of D1 above significant resistance will be considered that the growth will continue. If, however, the current location will signal sales, we will be able to consider short positions on the black gold. The charts from lower intervals so far do not show any interesting opportunities :
The decision of the RBA and the euro area GDP
St. Nicholas session (December 6)will treat us with some macroeconomic attractions. Already at 4:30 a.m. our time we will know the decision of the RBA regarding interest rates, then at 11:00 the next estimate of euro area GDP for the third quarter of this year. In second part of the day we will know US trade balance in November (14:30), factory orders (16:00) and PMI by Canadian Ivey (16:00).
The main rate of the RBA bank at this point remains at 1.5% and the markets do not expect any movement in its scope -so a possible surprise from the central bank can trigger stronger movements on the AUD. Monday’s session on the Aussie draws on Daily chart a pin bar, which tests the lows of September and 38.2% Fibonacci retracement. If the day is closed in such way, we get a signal that allows to consider long positions. Of course it will be better to abstain from trading until we know results of RBA meeting.