By FXEmpire.com
The Light Sweet Crude markets had a very quiet session on Wednesday as traders continued to question the $80 level as a comfort zone. The demand for light sweet crude is certainly week at the moment, there does come a point where OPEC gets involved. So far, they are willing to keep pumping out at current levels of production, but there does come a point where they start to cut back.
The breaking of the $80 level was a significant move in this market, and we think that over time the oil markets will fall. However, it is foolish to think that it isn’t due for a bounce and as such we are not willing to sell at this point in time. One such catalyst that could change our mind though, is the European Union summit. If we get really bad news out of that, there is a strong chance the dollar will rally, pushing this market lower. Otherwise, we are not willing to take a trade until Monday.
Click here to read Crude Oil Technical Analysis.
Originally posted here
