Brent Crude Oil Analysis: Bulls Hold the Line at Key Support
The XBR/USD chart reveals that Brent crude oil is trading near its lowest levels of the year.
Several factors are pressuring oil prices:
China's uncertain demand outlook: As the world's largest crude oil importer, any signs of weakening demand weigh heavily on the market.
A strengthening US dollar: Since Brent is priced in USD, a stronger dollar makes oil more expensive for international buyers, dampening demand.
Trump's promises to halt wars, including in the Middle East: This reduces geopolitical risk, which traditionally acts as a bullish factor for oil prices.
Technical Analysis of XBR/USD
From a technical perspective, bears appear to maintain control as a key trendline has shifted from acting as support to resistance (as indicated by the arrows on the chart).
Currently, the price oscillates around this trendline, which serves as the median of a channel marked by blue boundaries:
The upper boundary has been tested only once.
The lower boundary is under consistent pressure. Bulls, however, have managed to keep the price above the psychological $70.00 level.
How long can demand forces sustain Brent above $70? A fresh bearish breakout below this level could occur, testing whether buyers can prevent the market from extending its downtrend, which has persisted since April 2024.
Read more: https://fxopen.com/blog/en/oa-brent-crude-oil-analysis-bulls-hold-the-line-at-key-support/
Text source: Forex Trading Blog
