FX.co ★ Global macro overview for 25/08/2016

Global macro overview for 25/08/2016:

The Crude Oil Inventories surprised market participants again as the data were completely different than expected. According to the report, US crude oil stockpiles added 2501k barrels in the week ended August 19, but market participants expected a drop to the level of -850k barrels after last month similar (but larger) drop to the level of -2508k barrels. In conclusion, the recent mass media news about the possible Iran's limit on oil supplies might be quite helpful to tame the global supply glut as inventories are on the rise again. Only a wise decision based on all OPEC members agreement in the next meeting will finally prevent the stockpiles to rise above the line in the sand.

Let's now take a look at the Crude Oil technical picture in the 4H time frame. The technical support at the level of 46.55 is being tested currently. Bulls have managed to lift the price a little higher from that level. The help from 55 periods moving average was the additional factor that helped the bull camp, but so far it does not looks like any rally upward on the table. The bull/bear fight continues as the next resistance is seen at the levels of 48.32 and 48.75.