Brent technical analysis: Breakout seen on 4H favors test of $72.00

Brent bounced up sharply from key support levels on Monday.
The 4-hour chart is now reporting falling wedge breakout.

Omkar Godbole FXStreet Contributor

Having bounced up sharply from the confluence of key moving average lines on Monday, Brent Oil is now looking north toward $72.00.

The US-China trade-led risk-off had pushed the black gold down by more than 2% in the Asian session on Monday. The sellers, however, ran out of steam near $69.11 - a level where the 50-day and 200-day moving averages were located, allowing a bounce to $71.78.

In the process, Brent confirmed a falling wedge breakout on the 4-hour chart - a confirmation the pullback from the recent highs above $75.50 has ended. Further, the 4-hour chart is now reporting a double bottom breakout and is biased bullish above 50.00.

As a result, prices look set to test the 4-hour chart 100-MA, currently located at $72.00. Further gains, however, may not be seen as the downward sloping 10-day MA is located at $71.92.

4-hour chart

Trend: Bullish

Pivot points

1. R3 75.1
2. R2 73.31
3. R1 72.21
PP 70.42
1. S1 69.32
2. S2 67.53
3. S3 66.43

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 flirts with weekly lows near 1.1770

EUR/USD now comes under further selling pressure, breaking below the 1.1800 support to challenge the area of weekly throughs near 1.1770 on Thursday. The pair’s decline comes in response to marked gains in the US Dollar amid steady geopolitical tensions. Ealier in the day, the ECB’s Lagarde delivered cautious remarks, although the currency remained apathetic.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

Gold is now facing some downside pressure, hovering around the $5,170 region on Thursday. The yellow metal surrenders part of its earlier gains on the back of the resurgence of the buying interest in the Greenback. In the meantime, geopolitical tensions in the Middle East continue to limit the downside potential for now.