As events unfold in Europe surrounding Greece, risk sentiment appears to be returning to the market in the European session. The Euro made a recovery yesterday against the USD, and is holding its ground today. There is normally an inverse correlation between the EURUSD pair and Oil, which itself is trading very close to $57 a barrel, and appears to be losing its bearish momentum. With the EIA Crude stocks report released this afternoon, several Federal Reserve members are holding press conferences around the globe which may hold vital clues to US future monetary policy.
The markets are expected to be volatile during and after these key events. The EIA report is expected to show a large decline in oil stocks, so any surprise figures could cause a dramatic move in Oil.
Oil is approaching its 55 EMA (Exponential Moving Average) a potential key level of interest.
WTI Crude Daily Chart