By FX Empire.com
Light Sweet Crude
The CL contract fell on the session for Monday as traders considered the area as a “no man’s land” section in the marketplace. The recent breaking above the $90 level was significant, but the $95 level seems to be very resistive as well. The market is going to be sensitive to headline risk coming out of Europe, and as such – will be difficult to hold for anything more than a quick trade. Currently, we like the idea of buying on supportive candles above the $90. If we break below the $90 mark on a daily close – we would consider selling down to the $80 level.
Brent
The Brent market fell on Monday, stopping at the bottom of the recent range. The $107.50 level is currently the “bottom”, and the $112.50 level being the “top”. The market seems like it is “stuck” in this area, and consolidation is very likely at this point. If the Federal Reserve meeting this week speaks of quantitative easing, the commodities will get a bid and oil will be no different. However, until we get a move out of the range – we are waiting for directional clues.
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