Global marco overview for 04/08/2015:
The poor Chinese PMI data from Monday (47.8 vs. 48.3, 48.2 prior) was the main cause of the continuing crude oil sell-off. The difficult situation of the Chinese manufacturing and the government inability to overcome the recent stock market crash have created an uncertainty wave in the country. The commodity-related currencies are slipping as well, along with the commodities like copper (six-year low), crude oil (Brent oil is $4 above 2015 lows), silver, and gold.
From the technical point of view, the crude oil has taken out some important technical supports and the downside momentum remains in its favor. The next very important support is at the level of 41.98, the resistance is at the level of 46.67.
The material has been provided by InstaForex Company – www.instaforex.com