Crude Oil is approaching the key $80 support zone

Crude Oil has been on a steady retreat as the Israel-Iran episode ended without a major escalation. The price is now approaching a key support zone around the $80 level where we can also find a long term trendline adding some extra confluence.

This zone will be key as the buyers will likely step in to position for a rally into the $90 level while the sellers will look for a break lower to invalidate the bullish setup and open the door for a fall back into the $60 region.

On the fundamentals side, not much has changed except the pricing out of the geopolitical risk premium. We could see Crude Oil falling more but that will likely need some clear weakness in the data to make the market to price in lower demand.

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