November 27, OctaFX – The price of crude oil dropped slightly after yesterday’s relief rally. The drop came after Donald Trump talked to the Wall Street Journal (WSJ) about his upcoming meetings at the G20.
In the interview, he said that he was little optimistic about his meeting with China’s Xi. Traders were hopeful that the meeting will provide an opportunity for the two biggest economies to make a truce.
Such a truce would help change the current business climate and improve the economic growth in the coming year. Analysts are banking on the weakness of the US stock market to force the US president to make a deal.
Crude Oil Technical Forecast
The XTIUSD pair eased from yesterday’s rally and resumed the downward trend. This is a strong trend that started on October 3. The pair’s price is below the 30, 50, and 100-day EMAs as shown below.
The RSI has moved from below 27 to the current 37, while the Bears power strength has eased a bit. The pair will likely continue the downward trend. If it does, it will likely move below 50. However, the coming OPEC and G20 meetings could reverse the downward trend.
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