Oil on the Recovery Path

USOUSD Chart Analysis

Oil has been moving higher and is now poised to move above the $90 mark as the pair registered an 8% growth in October, its first monthly gain since the month of May. The chart shows that the Oil could break out on the upside if the prices move above the Pivot at $89.50 and consolidate. The 50-day SMA and the 20-day SMA have already crossed and the prices dropped temporarily. This reflects there could be more upside for Oil soon. The MACD indicator is also signalling an upside break on Oil as the signal line and the indicator line have both moved above the midline.

USOUSD Chart Direction Bias – 1 Week

Trade Insights

USOUSD – The chart shows viable long positions above the major pivot level at $89.50 to first test the key resistance level at $87. After the first resistance level, the Oil investors can test the resistance zone between $$93 to $95.

Alternatively, Chart shows possible short positions below the major pivot at $89.20 with the first target of the key support level at $87 and then the test for the support zone between $85 to $83.

Mover and Shaker of the day

USD/JPY dropped further by -0.62% or -92 Pipsjust before the FOMC decision on Interest rates today.