Crude oil has pulled back after hitting our target of $93.80. Commodities rallied out the gate yesterday, but now the dollar is putting pressure on that move.
Oil is currently trading just below the $92.75 support level (which was a target).
So what's the short term play?
A close below $91.30 - $91.50 will likely cause more liquidation, and press the market into reversal mode at $90.50. The halfway retracement on last month's range comes in at $89.81. And there are some near-term worrying signs:
Today's stronger-than-expected ADP number gave only a slight boost to crude, and the dollar continues to get a bid off fears of future budget snags.