The oil exporting OPEC and non-OPEC countries had a meeting in Vienna on the 11th December. This meeting had the outcome that the agreement of curbing oil production by 1.76 million barrels per day, will take place.
Negotiations regarding the oil production output took a long time to complete. Exporting countries were waiting for an increase in the oil prices and tried to fill the budget gaps by increasing the oil production. But the truth is, that the drop in the prices took less time than the increase in oil production. Even the devaluation of local currencies did not help to rebalance the budgets.
The agreement reached on Saturday is not a win for the oil exporters. It is a desperate attempt to make the oil prices rise, to attract additional means in the budget. We have already seen that some countries started to sell their oil companies and enter the external borrowing markets. This situation reminds us what happened with the Saudi- Arabia and Russia.
Looking at the weekly oil chart, we see that the key resistance level of 52.00 $/bbl got broken. We should expect the oil prices to go up to 60 USD per barrel. Although, we should not dismiss the optimistic scenario regarding the increase in the oil prices to 70 USD per barrel. However, do not rely on this just yet. We should wait and see how the agreement in Vienna will be put to work:
As for single currency, we can buy it away from the 1.0521 level, at the forming of the candlestick pattern, while the selling should take place at the level 1.0700. This is representing the broken neckline of the double top:
The currency pair is approaching the 4th point of the ascending channel, but placing the limit order is too dangerous right now and should not be placed, as the chances of a broken channel are too high. It is better to wait for an engulfing, which has been quite regularly showing up in the charts of the Canadian dollar:
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