Patterns: Brent.CMD/USD, Light.CMD/USD
|BRENT.CMD/USD 4H Chart: Sets for breakout
After the Brent crude oil tested the monthly R1 at 67.73 on July 11, the commodity made a U-turn south. As a result, the pair has lost about 5.47% in value since last week's trading sessions.
Currently, BRENT.CMD/USD is trading near the bottom line of an ascending channel pattern. From a theoretical point of view, a breakout could occur during the following trading sessions.
If this breakout occurs, the pair could aim for a swing low at 60.32 during next week's trading sessions.
On the other hand, the 200-hour simple moving average at 63.74 might provide support for the pair within this week's sessions.
LIGHT.CMD/USD 4H Chart: Could edge lower
The Light crude oil prices have depreciated about 6.23% in value since last week's trading sessions. The commodity breached both the 50– and 100-hour SMAs at 58.94 during yesterday's session.
Most likely, the LIGHT.CMD/USD pair could continue its southern movement in the coming days. The pair might aim for the 61.80% Fibonacci retracement level during next week's trading sessions.
However, a support cluster formed by the 200-hour simple moving average and the combination of the weekly and the monthly PPs at 56.14 could provide significant support for the pair in the nearest future.
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