{"id":59253,"date":"2014-08-25T07:33:42","date_gmt":"2014-08-25T11:33:42","guid":{"rendered":"http:\/\/countingpips.com\/?p=59253"},"modified":"2014-08-25T09:20:48","modified_gmt":"2014-08-25T13:20:48","slug":"crude-oil-tumbles-on-strong-supply-and-dollar-strength","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/08\/crude-oil-tumbles-on-strong-supply-and-dollar-strength\/","title":{"rendered":"Crude Oil Tumbles on Strong Supply and Dollar Strength"},"content":{"rendered":"
August 25, 2014<\/div>
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Article by ForexTime<\/a><\/p>\n

The weekly chart of crude oil futures prices is the best reflection of what is currently happening.\u00a0 Prices continue to fall as the market prices in heavy production increases seen during the spring and summer in North Dakotas Bakken Shale.\u00a0 Production has climbed to 1 million barrels a day from nearly zero 5-years ago.<\/p>\n

The dollar has also contributed to the decline in crude oil prices.\u00a0 Oil is priced in US dollars which means as the value of the dollar increases the value of crude oil will decrease at that rate.\u00a0 The dollar is gaining strength as U.S. interest rates increase relative to foreign interest rates.\u00a0 The dollar index increased by 1% this week and is up nearly 4% since early July.<\/p>\n

U.S. economic data showed some strength with housing numbers showing the most impressive results.\u00a0 U.S. existing home sales beat estimates with a 2.4% July rise to a 5.15 million rate from a 5.03 million clip in June to leave a gradual four-month climb from a 4.590 million two-year low in March.<\/p>\n

Traders were also eyeing two speeches Friday one by Fed Chair Janet Yellen and the other by ECB President Mario Draghi, both at Jackson Hole Wyoming.\u00a0 Yellens speech was more of the same, which means that rates will remain low, with the likelihood of a rate hike in the 2nd<\/sup> or 3rd<\/sup> quarters of 2015.<\/p>\n

\"wti-082514\"<\/a><\/p>\n

Crude prices broke through weekly trend line support, and are poised to test horizontal trend line support near $90.70.\u00a0 Resistance is seen near former support at $95.00.\u00a0 Momentum has turned negative with the MACD (moving average convergence divergence) index generating a sell signal.\u00a0 This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.\u00a0 The RSI moved closer to oversold levels and is printing near 35, which is the bottom of the neutral range.<\/p>

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The weekly chart of crude oil futures prices is the best reflection of what is currently happening.\u00a0 Prices continue to fall as the market prices in heavy production increases seen during the spring and summer in North Dakotas Bakken Shale.\u00a0 Production has climbed to 1 million barrels a day from nearly zero […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-59253","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=59253"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/59253\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=59253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=59253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=59253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}