Global macro overview for 07/05/2018:

Crude oil in the US is more expensive, by 1.4 percent, and is already priced above $70 a barrel for the first time since November 2014 because the global investors are still waiting for important decisions - US President Donald Trump has the coming days to decide whether to restore American sanctions against Iran. Trump criticizes the agreement with Iran in 2015.

The goal of an agreement concluded in July 2015 between six powers (Germany, China, USA, France, Great Britain and Russia), and Iran is to limit the country's nuclear program in exchange for the abolition of sanctions. Trump announced earlier that if the US together with the European allies fails to change the deal with Iran, the US will withdraw from the deal. The decision on this matter is to be made by May 12.

Meanwhile, Iran's president Hasan Rowhani said on Sunday that his country had prepared plans for reaction to every decision of the US president regarding the 2015 nuclear contract. He warned that the US would regret "as never before" if they withdrew from the contract. "We have plans to resist any Trump decision on a nuclear deal," said Rowhani. "If the United States leaves the nuclear agreement, soon you will see that they will regret it, as never before in history," he added.

In conclusion, new sanctions on Iran would remove some of Iran's oil in global fuel markets, which would exacerbate the supply-demand situation and support higher oil prices.

Let's now take a look at the Crude Oil technical picture at the H4 time frame. The market has made a new local high at the level of 70.66 in extremely overbought conditions. The next target for bulls must be taken from the weekly time frame at this would be the 61% Fibo at the level of 76.95. On the other hand, the immediate support is seen at the level of 69.56. The trend remains bullish.

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