Renewed Dollar Strength Looks To Send Crude Oil Lower

Crude oil closed sharply lower on Wednesday as it consolidates below the 20 day moving average crossing at 68.85. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If August extends this week's decline, the 25% retracement level of this spring's rally crossing at 66.29 is the next downside target. Closes above last Friday's high crossing at 72.85 are needed to confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 69.86
Second resistance is the 10 day moving average crossing at 70.76

First support is Tuesday's low crossing at 66.37
Second support is the 25% retracement level at 66.29

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Natural gas closed lower on Tuesday as it extends last week's decline. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If July extends today's decline, the reaction low crossing at 3.550 is the next downside target. From a broad perspective, July needs to close above 4.721 or below 3.395 to confirm a breakout of this spring's trading range and point the direction of the next trending move.

First resistance is the 10 day moving average crossing at 4.01
Second resistance is last Tuesday's high crossing at 4.39

First support is today's low crossing at 3.72
Second support is the reaction low crossing at 3.56

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The U.S. Dollar closed higher due to short covering on Wednesday while extending this month's trading range. The high range close sets the stage for a steady to higher opening on Thursday.

Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. Closes above 81.97 or below 79.62 are needed to clear up near term direction in the market.

First resistance is the reaction high crossing at 81.97
Second resistance is the reaction high crossing at 83.69

First support is today's low crossing at 79.90
Second support is the reaction low crossing at 79.62