Global macro overview for 06/09/2016:
Good news regarding the current oil supply glut was released yesterday. According to Reuters news agency, Saudi Arabia and Russia agreed on Monday to cooperate in global oil markets. The cooperation will include a crude output cut in the future, which should help decrease the global supply as both countries are among leading oil producers. This might be the first step towards a strategic energy partnership and might also encourage other producers to join the cut.
Let's now take a look at the Crude Oil technical picture on the H4 time frame. Immediately after the news was released, the crude oil rallied to the next technical resistance at the level of 46.40 where it was capped. Currently, the price got back to the trading range, but is still trading above 21-period moving average. If the bull camp wants to continue pushing prices higher, they must break out above the mentioned resistance at the level of 46.40 and head towards recent highs at the level of 48.70. Otherwise, the price will test the 61% Fibo at the level of 42.88 again.
