FX.co ★ Global macro overview for 23/01/2017

Global macro overview for 23/01/2017:

During the weekend, the OPEC's monitoring committee met to supervise and update the recent oil cut deal. Saudi Energy Minister Khalid al-Falih who spoke with the media following the meeting, said the implementation of the agreed cuts had been "fantastic" and he hopes for 100% compliance in February. Russian Energy Minister Alexander Novak also sounded positive noting that the results were above expectations. Moreover, the new body of control had been made to monitor the implementation, which is called the Technical Joint Committee (JTC). It will cooperate with the OPEC Secretariat in compiling production data. This data is due to be presented to the ministerial Monitoring Committee by the 17th of every month and the next JTC meeting will be in March in Kuwait.

Let's now take a look at Crude Oil technical picture on the 4H time frame. The bulls tried three times to break above 53.50 and failed. The price reversed back to the trading range between the levels of 53.50 and 50.90. The two recent higher lows at the levels of 50.68 and 50.90 might suggest the bulls did not say the last word. However, any break below this zone will result in an immediate drop to the key techncial support at the level of 49.57.