Why This Forex Trader Is Bearish On Oil

Kiana Danial is a forex trader, but she’s also bearish on oil.

“Here’s the deal: The U.S. dollar and oil are reversely interconnected,” she explained. “And if I’m saying that I am bullish on the U.S. dollar, I have to say that I’m bearish in oil.”

Danial is the founder and CEO of Invest Diva. She recently joined Benzinga’s #PreMarket Prep to talk about the fundamentals and technicals that are keeping her bearish on oil.

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She began by saying that oil has been in a bear market for such a long time, and a lot of people are expecting a rebound. While Danial said that there might be a correction on oil, she is still bearish in it.

In addition to being bullish on the U.S. dollar, she said that geopolitical issues like Saudi Arabia cutting down on oil future prices and energy sanctions on Russia, in addition to oil inventories in America, are reasons why she is bearish.

On the technical side, Danial said that many people think oil has hit its bottom.

4 reasons why Land Down Under has been going under http://t.co/ANwB73YDMA #AUDUSD #aussie #AUD #kangaroo

— Invest Diva (@InvestDiva) November 6, 2014

“Right now, I think it’s going to shift up a little bit more maybe toward the level or 82, and then it’s going to bounce back down and remain either at the 75 area or go even lower down,” she said.

Danial also talked about the Australian dollar and her website.

Check out the full interview here:

Don’t forget to tune in to Benzinga’s #PreMarket Prep broadcast Monday-Friday 8-9:45 a.m. ET for all of the premarket info, news and data needed to start the trading day.