Patterns: Brent.CMD/USD, Light.CMD/USD
BRENT.CMD/USD 4H Chart: Likely to maintain channel
The Brent crude oil prices have declined by about 14.60% in value since September 17. The commodity is currently trading in a junior descending channel pattern.
The BRENT.CMD/USD pair will most likely maintain the junior descending channel within this week's trading session. Bearish traders could aim for the lower boundary of the channel pattern at 55.63.
However, a support level formed by the weekly S2 at 58.21 might provide support for the exchange rate during the following trading sessions.
In the meantime, technical indicators flash sell signals on both the smaller and the larger time-frame charts.
LIGHT.CMD/USD 4H Chart: Could make short-term pullback
The Light crude oil prices have depreciated about 13.46% in value since September 17. A breakout occurred through the lower boundary of an ascending channel pattern at 55.11 during Monday's trading session.
Given that a breakout had occurred, the LIGHT.CMD/USD pair will likely continue to edge lower within this week's trading sessions. Bearish traders might target a swing low at 50.29.
However, the commodity is expected to make a pullback towards a resistance cluster formed by the weekly and monthly PPs at 56.84 during the coming days.
Author
Dukascopy Bank Team
Dukascopy Bank SA
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