FX.co ★ Global macro overview for 31/08/2016

Global macro overview for 31/08/2016:

Another Crude Oil Inventories data are scheduled for release today at 02:30pm GMT. Global investors expect the stockpiles to drop to the level of 1310k barrels from 2501k barrels a week ago. The recent statements from Iraq and Iran's ministers have also diffused traders' optimism over the upcoming informal meeting between the members of OPEC in Algeria, which is weighing heavily on crude oil prices. In conclusion, the clear threat of rising US production volumes in form of rising crude oil stockpiles and recent US Dollar rally after Jackson Hole economic conference are adding fuel to the fire for crude oil bears.

Let's now take a look at the Crude Oil technical picture in 4H time frame. After the false breakout, bears have managed to push the price below the golden trend line and below 21- and 50-period moving average. The drop stopped at the 100-period moving average, but the bull camp was too weak to push the prices above the technical resistance at the level of 46.40. Despite the hammer candle at the end of the drop, bears seem to be in control over this market and next flush down might happen anytime soon.