XBR/USD Analysis: Brent Oil Price Soars After Attack on Israel
Following Israel's military operation in Lebanon, Iran launched a missile strike on Israel on October 1. Financial markets reacted sharply as soon as the first reports of the attack emerged:
U.S. stock indices dropped significantly, and Bitcoin also fell, with BTC/USD nearing the psychological $60,000 mark at yesterday's low.
Gold surged to $2670, though supply forces have since curbed the panic buying, and XAU/USD has dropped back below $2650.
Oil prices also spiked. Unlike other financial assets, there has been no correction on the XBR/USD chart today, despite the end of the missile strike on Israel. This highlights oil's heightened sensitivity to Middle Eastern tensions.
According to todays technical analysis of XBR/USD:
Brent oil price movements have formed an upward channel (shown in blue), beginning in early September. Following the news of the missile attack, the price has climbed into the upper half of the channel.
Interestingly, just before this surge, the price had hit a multi-week low with a false bearish breakout below the psychological $70 per barrel level.
Given Israels vow to retaliate for Iran's strike, its reasonable to assume that oil demand may remain high, potentially pushing XBR/USD towards the upper boundary of the channel, surpassing the current resistance at $75.
Brent oil could find support at the median line of the blue channel and the $72.50 level.
Read more: https://fxopen.com/blog/en/oa-xbr-usd-analysis-brent-oil-price-soars-after-attack-on-israel/
Text source: Forex Trading Blog
