By Mexgroup.com
Brent Oil Registered An Amazing Drop
Price dropped as much as 55.67 level today, but failed to stay near it and now has squeezed a little. Brent is strongly bearish on the short-term and looks too heavy to be stopped at this moment. Is focused on correction after a false breakout, remains to see how long this will be because technically it should drop further in the upcoming months. However, we still need a confirmation that we’ll have a major drop on the medium term, that’s why I’m waiting for the price to come back in the upcoming days to retest and confirm some resistance levels.
Price dropped even if the USD/CAD is losing altitude, Brent will slide further if the United States data will come in better than expected. The greenback needs support from the US economy, a stronger dollar will bring more pressure on the oil’s price.
Price dropped further and is targeting the downside line of the up channel, could reach this in the upcoming days even if we’ll have a minor rebound. The perspective is bearish on the short term, but it could turn to the upside to retest the 250% Fibonacci line (descending dotted line) before will resume the corrective phase.
The false breakout above the median line (ML) of the ascending pitchfork signaled that we may have a major drop on the short to the medium term, but we still need a confirmation before we can take action again. Brent could come to retest also the median line (ML), only a rejection from it or a failure to reach this dynamic resistance will send the price towards the next important downside obstacles (61.8%, 50%, etc.).
Free Reports:
USD/CAD Could Turn To The Downside
Price is trading in the red on the short term and tries to retreat after the minor rebound. Technically is expected to drop aggressively in the upcoming period if will really fail to retest the upper median line (uml) of the descending pitchfork. Now is pressuring the 1.2460 static support (resistance turned into support).
Could reach also the median line (ml) of the blue ascending pitchfork, a valid breakdown below this obstacle will announce a further drop. Only a valid breakout above the upper median line (uml) will signal a further increase.
USD/JPY Minor Drop Validated
Technically the pair should drop at least towards the 38.2% retracement level after the false breakout above the warning line (wl1) and the median line (ml) of the minor ascending pitchfork. You should be careful later because the price wil be driven by the fundamental factors.
By Olimpiu Tuns – Market Analyst
I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.
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The post Daily Market Report – Brent Oil Hit New Lows October 04, 2017 appeared first on mexgroupblog.
