Daily Market Report – Brent Oil Is This A Valid Breakout? October 16, 2017

Brent Oil Edged Higher

The oil price rallied as the fundamental factors have taken full control again, but remains to see how much will least because it could be only a temporary rebound. Price jumped much above some very important resistance levels, but remains to see if will have enough energy to stay above, or this will be a false breakout.

Brent rallied amidst geopolitical tensions, even if it was expected to drop from the technical viewpoint. Price edged higher and reached the 58.64 high, but the bulls weren’t so strong to keep it higher and now is trading below the 58.00 psychological level.

The Oil dropped in the last hours as the USD/CAD rallied aggressively and reached new highs. Technically, the USD/CAD could jump much higher after the retest of some important support levels and could add more pressure on the oil’s price.

Price rallied and climbed much above the median line (ML) of the major ascending pitchfork and above the 57.72 static resistance, but failed to reach and retest the upside line of the up channel. I’ve said in the previous reports that a valid breakout above the ML will signal a further increase at least till will reach the 59.50 previous high.

A failure to close above the 59.50 level will signal a sharp drop in the upcoming period. The perspective remains bullish as long as is trading within the up channel, so only a valid breakdown from it will really confirm a larger drop.

EUR/GBP Further Drop Expected

The EUR/GBP opened with a gap down and resumed the bearish movement, but the bulls have stepped in again and have forced the price to climb higher. Technically, the rate is expected to drop further on the short after the false breakout above the median line (ML) of the ascending pitchfork. The next downside targets are at the 100% level and at the wl3, while the next major target will be at the LML.

USD/JPY Bounce Or Break?

The USD/JPY reached new lows today, even if the Nikkei stock index stays higher. Price dropped because is still under selling pressure after the several false breakouts above the median line (ml) of the ascending pitchfork and after the failure to stabilize above the upper median line (uml) of the minor descending pitchfork.

A valid breakdown below the 38.2% retracement level will signal a further drop, the next downside targets will be at the WL3 and at the 250% Fibonacci line.

By Olimpiu Tuns – Market Analyst

I graduated a Master in Business Administration, I am a Market Analyst / Trader on Financial Markets (forex, commodities, futures, options) for more than 6 years, I use technical and fundamental analysis for my daily activity. Founder and Market Analyst at ovtbusiness.com (Financial Markets Blog) and contributor on investing.com, actionforex.com, countingpips.com, forexalchemy.com, etc.

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