14.03.201712:53 Forex Analysis & Reviews: Global macro overview for 14/03/2017

Global macro overview for 14/03/2017:

Another record was set in the U.S. and this time it is related to the crude oil industry. The latest Baker Hughes' oil rig count logged a total increase to 768 in the week ending March 10th from 756 in the previous week. It was the eighth consecutive week when the number of oil rigs increased to 617 from 609. The number of oil rigs is now close to 60% higher than a year ago levels and over 95% higher than 2016 lows. In conclusion, trends in the U.S. shale production have become a much more important market focus over the past few weeks, especially with soaring crude oil production and inventories.

Let's now take a look at the Crude Oil technical picture in the H4 time frame. The price has made a bottom at the level of 47.91 and now is trading in oversold market conditions. The higher time frame resistance is now the gray area between the levels of 48.61 - 49.22. Only a sustained break out above this level would change to the bearish bias, otherwise lower levels are being anticipated after the corrective cycle is completed.