Crude Oil Extends This Week's Decline

May crude oil closed lower on Wednesday and below the 20 day moving average crossing at 49.60 as it extends this week's decline.

The mid range close sets the stage for a steady opening on Thursday.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the reaction low crossing at 43.74 is the next downside target.

Closes above the 10 day moving average crossing at 51.77 would temper the near term bearish outlook.

First resistance is the 20 day moving average crossing at 49.60.
Second resistance is the 10 day moving average crossing at 51.77.

First support is today's low crossing at 47.26.
Second support is the reaction low crossing at 43.74.

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The June Dollar closed higher on Wednesday due to short covering as it consolidates some of Tuesday's decline. The mid range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, the 20 day moving average crossing at 86.55 is the next upside target. Closes above the 20 day moving average crossing at 86.55 would confirm that a short term low has been posted.

Closes below the weekly uptrend line crossing near 83.70 would confirm that a major top in the Dollar has been posted while opening the door for a larger degree decline this spring.

First resistance is the 20 day moving average crossing at 86.55.
Second resistance is Monday's high crossing at 86.61.

First support is the 10 day moving average crossing at 84.89.
Second support is the reaction low crossing at 83.14.