Spot crude oil prices briefly peaked above the psychological $100 level before being sent lower on a stronger USD and doubts of a continued economic recovery. While the pullback in the price of spot crude oil may seem worrying especially given the bearish technical signal from Thursday’s trading, a healthy trend requires the occasional decline.

As readers of the FOREXYARD Daily Forex Analysis should recall, our expectations for an additional round of bond buying from the Fed (QE3) could very well support crude prices in the future. Despite Thursday’s bearish outside day down candlestick for spot crude oil, a pullback may be natural given the commodity has added more than 33% to its price since the beginning of October. Declines in the price may allow traders additional buying opportunities in the commodity. Support for spot crude oil is found at $96.65 from Friday’s low followed by $94.50 from the October 25th high. Resistance comes in at last week’s high of $103.25 followed by $104.50 from the mid-May high.