WTIC Oil, monthly'2, rainbow
Summary
We continue to hold the third consecutive red candle on the giant monthly 'rainbow' chart. The $90 threshold looks likely to fail in the immediate term, and that should offer a further $5 of downside - back to the April 2013 low of $85.
There are clearly a number of conflicting variables. On the bullish side, most economies are still growing. Further, the geo-political concerns are keeping a 'fear bid' on Oil, although it is surprisingly minor in size.
On the bearish side, the US dollar continues to climb for a third month. Being priced in USD, is naturally bearish on WTIC Oil.
Looking ahead
Friday will see a quartet of data, Retail sales, import/export prices, consumer sent', and busi' invents'. That should be plenty enough to get some price action in the early morning.
*next QE is not until next Monday, but even then, it will only amount to $1bn
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Goodnight from London