Global macro overview for 05/04/2017:
The Crude Oil Inventories data will be released today at 02:30 pm GMT and the market participants expect a 100k decline in stockpiles. This might be first in time this year the stockpiles are expected to decrease significantly after last week's gain of 900k barrels. Moreover, the latest weekly American Petroleum Institute (API) inventory data for the week ending March 31st reported a draw of 1.83 million barrels. This draw followed a build of 1.91 million barrels last week and was only the 3rd draw in the past 3 months. In conclusion, today's Energy Information Administration (EIA) release will be important and if there will be another decrease in stockpiles, then the positive sentiment in this market will be supported.
Let's now take look at the Crude Oil technical picture at the H4 time frame. The target for the corrective wave up is 61%Fibo at the level of 51.93. Moreover, this level is a part of a bigger technical resistance zone between the levels of 52.15 - 52.53 and a failure around this area is expected. The overbought market conditions and growing bearish divergence support this view.
from www.instaforex.com
