By Mexgroup.com
Brent Oil Another False Breakout
The Brent Oil dropped and resumed the yesterday’s bearish candle and seems poised to reach fresh new lows in the upcoming days. Technically, it should start a larger drop after another false breakout and after the failure to reach the 59.50 previous high. Right now we still need a confirmation that we’ll have another leg down because is still trapped above some important dynamic support levels.
Price drops also because the Cable has lost some ground versus the greenback, remains to see what will happen in the upcoming hours as the Canadian data should bring some action. The figures should shake the USD/CAD and most likely will have an impact on the Brent as well. Personally, I believe that only the fundamental factors could force the rate to turn to the upside again.
Price plunged since yesterday and erases the latest gains, signaling that the bulls are too exhausted and that we have an overbought situation. I’ve said in the yesterday’s daily report that a larger drop will come if the rate will close below the median line (ML) of the major ascending pitchfork and if will retest this level. Brent dropped without a retest, actually has tried to come back above the ML in the morning, but failed to stay there.
It is trading above the 57.00 psychological level because has squeezed a little in the last hours, the next downside target will be at the 250% Fibonacci line (descending dotted line). Price could retest the upper median line (uml) of the minor descending pitchfork before will drop towards the next downside targets.
Free Reports:
Gold Retested The Broken Support
Price dropped after the retest of the first warning line (WL1) of the major ascending pitchfork. The downside was paused by the strong support area near the 50% Fibonacci retracement. Only a valid brekdown below the 50% level will announce a further drop. A USDX’s breakout above the 93.81 static resistance will send it towards the $1248 per ounce.
AUD/USD Losing Momentum
Price dropped today as the USD has taken the lead again on the short term. AUD/USD erased the yesterday’s gains, but failed to reach the 38.2% retracement level. I’ve said in the last reports that technically, is expected to climb towards the upper median line (uml) of the minor blue descending pitchfork. I’ve drawn a minor red ascending pitchfork hoping that I’ll catch an upside movement, price could come to retest the lower median line (lml). A valid breakout from the ascending pitchfork’s body will signal a further drop on the daily chart.
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 Major Drop Still In Cards October 20, 2017 appeared first on mexgroupblog.
