Crude oil feeling the pinch from global growth fears

The Trump’s announcement yesterday was without a doubt worse than expected. There were some positive caveats like reciprocal tariffs not coming into effect immediately and so on, but there’s a limit to optimism and hopefulness.

Right now, the market is pricing a slowdown in global growth which is generally negative for crude oil prices as it weighs on demand. We can see in the 4 hour chart below that crude oil sold off from the key 72.00 resistance zone as Trump announced the tariffs.

We have also broken below the upward trendline that was defining the bullish momentum and now we are about to test the most recent higher low. We can expect the buyers to step in there with a defined risk below the level to position for further upside, while the sellers will look for a break lower to increase the bearish bets into the next trendline.

This article was written by Giuseppe Dellamotta at www.forexlive.com.