Crude & Dollar Lower

Crude oil closed sharply lower on Monday extending the decline off last week’s high. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

The low range close sets the stage for a steady to lower opening on Tuesday. Closes below this month’s low crossing at 67.42 would open the door for a larger degree decline into September. If October renews this month’s rally, June’s high crossing at 75.27 is the next upside target.

First resistance is last Tuesday’s high crossing at 75.00
Second resistance is June’s high crossing at 75.27

First support is today’s low crossing at 69.13
Second support is this month’s low crossing at 67.42

The U.S. Dollar closed lower in quiet trading on Monday as it extends this month’s trading range. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.

If September extends the decline off this month’s high, the reaction low crossing at 77.52 is the next downside target. Closes above the reaction high crossing at 79.36 are needed to confirm that a short term low has been posted.

First resistance is last Wednesday’s high crossing at 78.89
Second resistance is the reaction high crossing at 79.69

First support is the reaction low crossing at 77.81
Second resistance is the reaction low crossing at 77.52

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