Oil price keeps falling as USD strengthens as market remains nervous after Brexit result. Investors choose less risky assets such as USD, Japanese yen and gold after S&P, Moody’s and Fitch downgraded UK.

USD itself gained about 1%, near 3-month high. This makes oil price and other USD denominated commodities become more expensive for investors who holds euro or other currencies.

Technical Analysis:

Oil price remains under pressure. 20 MA and 50 MA are still falling on hourly chart. Note that hourly stochastic has crossed down. Oil price currently is moving near the 50% Fibonacci at 47.11

Oil price possibly will fall again today, with 46.43 as target and 45.83 in extension. However, be careful if the price managed to break above 47.11 because it will turn the intraday bias bullish and possibly will be followed by a bullish move up to 47.79-48.39.

Trading Plan:

– Sell around 47.11 on bearish signal confirmation
– S/L: 47.41
– T/P: 46.43 or 45.83 in extension

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