By Mexgroup.com
Brent Oil Crucial Breakout Underway
Brent Oil rallied and erased the last two day’s losses. Is strong bullish on the daily chart also because the USD/CAD has touched fresh new lows on Tuesday. Technically should climb much higher on the short term after a false breakdown.
Brent has taken advantage of a weaker USD, as you already know, a weaker greenback makes the oil much cheaper for the international customers from outside the United States. The USD/CAD drop helped the oil to climb much higher, but we still need a confirmation that will resume this upside momentum.
You should be careful in the afternoon during the Canadian data release, the Trade Balance could drop further to -3.8B, while the Labor Productivity could increase by 0.9%. The main event will be the release of the Overnight Rate, the BOC is expected to leave the monetary policy unchanged, only a surprise could shake the price.
Price rallied and has managed to climb above the 53.03 major horizontal resistance, but failed once again to reach and retest the 61.8% retracement level. Now has retreated a little and could retest the broken static resistance before will climb much higher. Only a false breakout will signal a reversal on the short term.
Free Reports:
Brent continues to move higher within the ascending channel, so it should climb towards new peaks in the upcoming period. However, only a valid breakout above the warning line (wl1) and above the 61.8% retracement level will confirm an increase towards the major upside target from the median line (ML).
Gold Surges Thanks To Weaker Dollar
The yellow metal rallied in the US session and climbed much above the 1339 Monday’s high. You can see on the Daily chart that has failed to close the former gap up, signaling that the bulls are very strong. Should reach the $1348 per ounce and the lower median line (LML) of the major ascending pitchfork.
USD/JPY Too Heavy To Be Stopped
Price drops like a rock after the failure to stabilize above the warning line (wl1). The next downside target is at the 108.12 horizontal obstacle, but most likely will take this out as the Nikkei is under immense selling pressure. Should approach and reach the 61.8% retracement level and the long term 38.2% retracement level.
By Olimpiu Tuns
Market Analyst
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The post Daily Market Report – Brent Oil Breakout Needs Confirmation September 06, 2017 appeared first on mexgroupblog.
