Brent Crude Price Consolidates
When analysing the Brent crude oil price chart six days ago, we:
identified a downward channel marked in red;
noted that the median line was acting as resistance;
suggested the price could find support at the lower boundary of the channel, reinforced by the psychological $60 per barrel level.
As shown on the XBR/USD chart, since then:
the price has indeed rebounded from the lower boundary (as indicated by the arrow), rising from its lowest level in nearly four years;
the median line has reaffirmed its role as resistance (highlighted by the marker).
Why Is Oil Consolidating?
From a technical perspective, several indicators suggest the market is consolidating. Notably, both the ADX and ATR indicators are trending downwards, which may be interpreted as a weakening of price momentum and volatility. Additionally, Brents price currently hovers around the channels median line a level where supply and demand often reach equilibrium.
From a fundamental standpoint, its reasonable to assume that the current price has already factored in the latest developments surrounding the global trade war. However, another round of bold statements from the White House could still trigger a fresh move on the XBR/USD chart.
Read more: https://fxopen.com/blog/en/oa-brent-crude-price-consolidates/
Text source: Forex Trading Blog
