In about a day, the OPEC summit will start in Vienna, and it may end up with a decision to cut oil production. So, oil rates are slowly going up. Although the question on everyone’s mind is how far the summit will go with the cuts. Rumor has it that the oil production limit may be cut up to 1,4 million barrels per day. But oil rate might even drop after such a decision as the market adage is buy the rumor sell the news.
In the daily time frame, the WTI oil rates are slowly approaching the broken weekly uptrend and a local downtrend that can be clearly visible on the 4-hour time frame. Approaching the crossing point of these channels, the asset’s rate may form candlestick patterns that could signify the further probable drop in rate:
The British currency is trying to pull back from the support zone formed between the levels 1.2661 and 1.2696. Today’s trading session could close with engulfing implying potential reversal and gradual growth of the old gentleman:
Rate of Canadian currency stopped next to the resistance zone formed between the levels 1.3375 (50% Fibonacci level from the weekly chart) and 1.3386 (resistance level). It is not clear yet whether the asset will break through resistance zone or head down. As for now, we assume that the asset will pull back from resistance zone. In this case, we should rely on candlestick patterns that will signify potential reversal:
Please note that this material is provided for informational purposes only and should not be considered as investment advice. Trading in the financial markets is very risky.