By FX Empire.com
Light Sweet Crude
The CL shot up again on Friday as the “risk on” trade continued. The market seems to be gravitating towards the $100 mark, and as a result we feel this move is coming close to an end as we find ourselves closing in the $99 area. The move certainly should have another Dollar left in it, but buying here would be chasing the trade. The market simply needs to pullback in order to make the risk/reward worth the trade. Until then, we aren’t selling either – the market is far too bullish for that. Pullbacks are needed, and then we will buy.
Brent
Brent rose during the Friday session as well, and it currently testing the $115 level again. The market looks like it wants to retest the $120 level, and as long as the Dollar remains on the back foot, it is very likely. The $120 should be very resistive, so we don’t expect any move above that area in the short-term, but with all of this strength, we are not willing to sell under any circumstance. The pullbacks going forward should be seen as buying opportunities.
Originally posted here
