From a technical point of view, the key support to watch is a $101.50 – a break below this could lead to a drop towards the $99 handle again. On the upside, resistance meets the 50-day SMA at around $103.80/90. A potential break could see the price of US oil hit the $105 mark at some point in the near future. Brent has been stuck inside a tight range over the past several days. The key support to watch is around $106.80 – if this breaks then we could easily see another run towards this month’s low of around $104.50. Resistance comes in between $108.60 and $108.90. The upper end of this range ties in with 200-day SMA and also the 38.2% Fibonacci retracement level of the down move from the June peak. Thus a break above that area could lead to some sharp gains as it would also force many of the existing sellers to exit their trades.
Figure 1:
Source: FOREX.com. Please note this product is not available to US clients.
Figure 2:
Source: FOREX.com. Please note this product is not available to US clients.
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