CF: Oil, Metals Diverge as US Dollar Stages Uneven Rebound
Crude Breaks Key Resistance at $75, Positions to Continue Higher
Crude Oil (WTI) $75.22 // $0.04 // 0.05%
Crude prices have broken above key resistance at $75.00 and proceeded to take out the upper boundary of a rising channel that had been guiding prices higher since September. Familiar catalysts are in play, with swelling optimism about the global recovery driving expectations of future demand all the while the US Dollar continues to slump, adding buying interest from traders seeking an inflation hedge. From a technical perspective, the break opens the door for a move to test resistance in the $77.50 – $78.50 area.
