Crude Oil Struggles As The U.S. Dollar Closes Higher

Nothing is more important to trading crude oil than the U.S. Dollar. And the Dollar closed higher on Monday, above the 20 day moving average crossing at 80.80 confirming that a short term low has been posted, spelling trouble for crude oil bulls.

Profit taking tempered early gains and the low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If June extends the rebound off last week's low, the reaction high crossing at 83.33 is the next upside target. Closes below the 10 day moving average crossing at 79.88 would temper the near term friendly outlook in the market.

First resistance is today's high crossing at 81.53
Second resistance is the reaction high crossing at 83.33

First support is the 10 day moving average crossing at 79.88
Second support is last Tuesday's low crossing at 78.18

If you would like to trade the dollar itself your best choice of tickers would be the UUP. Here is a Free Stock Analysis for UUP.

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