Brent Nears the Upper Bound of a Range

JFD Team JFD

Brent crude oil traded north on Wednesday, after it hit support near the 62.20 barrier on Tuesday. The black liquid continues to trade within the sideways range between 60.00 and 63.60, which contained most of the price action since January 15^th, and although it is getting closer to the upper end, we prefer to remain sidelined for now. We would like to see a clear exit out of the range before we start examining its forthcoming directional move.

As we already noted, the price is now approaching the 63.60 zone, which is the upper bound of the aforementioned range, and also provided strong resistance back on December 4^th and 7^th. If the bulls prove strong enough to overcome that barrier this time around, such a move would confirm a forthcoming higher high and may initially pave the way for the high of November 21^st, at around 64.75. Another break, above 64.75, may encourage buyers to put the 66.00 zone on their radars. That area proved to be a decent support during November 14^th – 20^th.

Looking at our short-term oscillators, we see that the RSI lies above 50 and points up, while the MACD stands above both its zero and trigger lines, pointing north as well. Both indicators suggest upside speed and support the case for some more advances, but we would stick to our guns and wait for a clear move above 63.60 before we get confident on further bullish extensions.

On the downside, a dip below 62.20 may signal that investors want to keep the price within the range for a while more. Such a dip could open the way for the 60.60 zone, or the psychological barrier of 60.00, which is also the lower end of the sideways range. That said, in order to start leaning to the bearish side, we would like to see a clear dip below 60.00. Such a break could pave the way for the 59.00 hurdle, the break of which may carry more bearish implications, perhaps paving the way towards the lows of January 7^th and 8^th, at around 57.30.

Boost your performance with JFD Brokers’ proven DMA/STP. Don’t change your style, change your broker!

Author

JFD Team

JFD

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

Litecoin eyes $50 as heavy losses weigh on investors

Following a strong downtrend across the crypto market over the past week, Litecoin holders are under immense pressure. The Bitcoin fork has trimmed about $1.81 billion from its market capitalization since the beginning of the year, sending it below the top 20 cryptos by market cap.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Ripple exposed to volatility amid low retail interest, modest fund inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.