Brent Technical Analysis: Bearish RSI divergence seen in 4H chart

Omkar Godbole FXStreet Contributor

Brent oil is currently trading at $70.94, representing a 0.42 percent drop on the day and risks falling further, courtesy of the bearish divergence of the 4-hour chart relative strength index (RSI).

4-hour chart

As seen above, the RSI has created lower highs and lower lows as opposed to higher highs on price. The bearish divergence favors a test of the 50-candle moving average (MA) support, currently at $70.72. Acceptance below that level would further strengthen the case for a deeper pullback below $70.00.

A strong bounce from the 50-candle MA would invalidate the bearish RSI divergence.

Trend: Bearish

Brent Oil

Overview
Today last price	70.65
Today Daily Change	-0.31
Today Daily Change %	-0.44
Today daily open	70.96

Trends
Daily SMA20	68.95
Daily SMA50	66.8
Daily SMA100	63.1
Daily SMA200	69.1

Levels
Previous Daily High	71.24
Previous Daily Low	70.49
Previous Weekly High	71.57
Previous Weekly Low	70.08
Previous Monthly High	68.52
Previous Monthly Low	64.01
Daily Fibonacci 38.2%	70.78
Daily Fibonacci 61.8%	70.95
Daily Pivot Point S1	70.55
Daily Pivot Point S2	70.15
Daily Pivot Point S3	69.8
Daily Pivot Point R1	71.3
Daily Pivot Point R2	71.65
Daily Pivot Point R3	72.05

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD holds steady above 1.1850 as markets eye Eurozone GDP, US CPI inflation releases

The EUR/USD pair trades on a flat note near 1.1870 during the early Asian session on Friday. The major pair steadies amid mixed signals from the latest release of US economic indicators. Traders await the preliminary reading of the Eurozone Gross Domestic Product for the fourth quarter and US inflation data, which are published later on Friday.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold: Will US CPI data trigger a range breakout?

Gold retakes $5,000 early Friday amid a turnaround from weekly lows as US CPI data loom. The US Dollar consolidates weekly losses as AI concerns-driven risk-off mood stalls downside. Technically, Gold appears primed for a big range breakout, with risks skewed toward a bullish break.