December 3, OctaFX – The price of crude oil soared in the Asian session after the US and China reached a deal to suspend trade hostilities. In a meeting between President Xi and Trump, the two leaders agreed to halt hostilities and work on developing a trade deal beneficial for the two countries.
Trump agreed not to raise tariffs to 25% on Chinese goods while China agreed to increase purchases of American goods. Traders will continue paying close attention to the upcoming meeting of OPEC ministers in Vienna.
Will Crude Oil Continue to Rally?
On Thursday and Friday, the XTIUSD pair traded in a narrow range between 49 and 50. This came as traders waited for the G20 meeting. Today, the price jumped to 53.9. This was the highest level in more than a week and a likely sign that the downward pressure is over. The rally could accelerate ahead and after the OPEC meeting in Vienna.
On the four-hour chart, the 15-day EMA is crossing the 30-day EMA in a bullish way. The RSI has moved from 35 and is currently at 60 while the MACD is moving above the neutral level. It is likely therefore that the new upward trend will continue.
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