Brent Oil Price Retreats from a 3-Month High
On January 6, while analysing the XBR/USD chart, we:
constructed an upward structure using blue trend lines;
highlighted the potential for a pullback after the formation of peaks A and B around the $76.20 level.
What happened next?
As shown on the XBR/USD chart, Brent oil prices retreated on January 8 to the lower blue line (point C), where bulls successfully resumed the uptrend, pushing the price close to $81a level last seen in early October 2024, near a key peak (not shown on the chart).
According to The Wall Street Journal:
Demand was supported by sanctions imposed by the outgoing Biden administration on Russias oil industry.
Jonathan Ng, an OCBC Asean economist, noted that the price range of $7883 appears to be a relatively comfortable zone for Brent oil in the near term.
From a technical analysis perspective, the XBR/USD chart displays price action resembling a rounding top pattern. Therefore, its possible that after the bullish momentum triggered by the sanctions, another pullback towards the blue channel could occur in the short term.
Going forward, much will depend on the political and trade policies adopted by the incoming Trump administration.
Read more: https://fxopen.com/blog/en/oa-brent-oil-price-retreats-from-a-3-month-high/
Text source: Forex Trading Blog
