March 25, OctaFX – The price of crude oil declined in early trading as investors continued to worry about slow economic growth. This was after the weak PMI data released from Europe on Friday. The data showed that Germany manufacturing PMI had declined to 44.7 in February, which was the lowest level in almost a decade. In France, the PMI declined to 49.8 while in the EU27, the PMI declined to 47.6.
In the United States, the manufacturing PMI declined to 52.5, which was lower than the expected 53.5. The slowdown in the manufacturing activity is a major signal that the economy is slowing down, which tends to impact the crude price negatively. In addition to this, a report by Baker Hughes showed that oil rigs in the US continued to decline.
Crude oil price technical analysis
The price of Brent crude oil started to decline on Thursday when it reached a high of $68.50. Today, the XBRUSD pair declined to 65.95. On the hourly chart, this price is between the lower line of the Bollinger Bands and the middle one while the average directional index has declined to 28.
The Parabolic SAR is above the price. The current price is also along the 50% Fibonacci Retracement level. The pair will likely continue moving lower, to test the important support of 65.70.
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