Oil testing the downside, challenging the bullish gap

There were recent announcements of cuts along with Saudi Arabia's statement saying they will "do what it takes" to preserve oil prices and oil made two-year highs on the promised producer cuts with WTI piking to USD54.28bbls, the highest since July 2015, after Saudi Arabia signaled it’s ready to cut output more than already agreed. At the same time, the non-OPEC countries –including Russia– have also agreed to cut production and enter an accord which has propelled oil and petroleum products through the roof. 

However, the downside is playing out below the 52.50 pivot and the gap is being challenged with $52.00 as a key support as Dec 5th highs. 51.50 and 50.90 are the next levels to the downside while to the upside, a break through aforementioned highs opens 54.40 and then 55.00.

US dollar index back below 101.00, retreats ahead of FOMC meeting