Crude Oil Trades Lower on USD Strength

S&P pulled back after initial rally on Friday 02nd November, USD Rallies, Gold & WTI Crude oil selloff , EUR & JPY lost ground against US currency.

Better than expected increase in Non-Farm payrolls as US jobs market added 171K jobs versus expected 125K. This is quite significant because it is the last employment report before the presidential elections due in November. Could such impressive improvement to the unemployment market shift the expectations for further Fed stimulus? The US Dollar gained sharply impacting commodities and forex in general but especially Gold, Silver, Crude Oil, EUR and JPY.

Brent Crude price action could not hold support at crucially important 107 – 106.59 level. Also additional bearish downward pressure is helped by the possible creation of Bearish Cross (50 Day SMA crossing 200 Day SMA).

Support on the downside is located at 103.12 followed by 102.34 and 102.10. Alternatively resistance on the upside is located at 106.59 followed by 107.10 and 107.67.

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