OPEC came an agreement on an oil cut of 750k barrels per day, though the cut will only begin in November. Oil moved up sharply when the news was released with USDCAD making a massive drop. We could see the oil price come down before November when the terms and management of the freeze are finalized. This is the first time in 8 years that OPEC have made such an agreement and could be the news that helps commodities strengthen and Yen weaken. It could also help America with their rate hike as now the risk of a crashing oil price is minimized due to a strong Dollar as a result of a rate hike. The timing for this meeting and this agreement could not be better when one considers the risk events taking place in America at the moment.

WTI Crude Daily

Oil is currently just above $47 a barrel - we have seen sell off above this level and are currently at the resistance trend line.

WTI Crude H4

Price hit WM4 so we could see some profit taking, especially with it being the end of the week. Support is indicated by the highlighted green zone.

WTI Crude H1

Should price fall, support zones highlighted in green. Keep an eye on psych levels with $48 above us at resistance and $46 below us in the fib zone.

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