Yesterday, the price of crude oil Brent rose to the level of 63.15 USD per barrel. According to Reuters agency, the USD has been declining against major world currencies, which makes the price of oil in the USD more profitable for the market participants.
Price movement was negative on Wednesday due to the statement made by Arab countries coalition that they would suspend air operation against Houthis rebels in Yemen. Nevertheless, soon after the announcement about the cessation of bombing, aviation started the attack near the city of Taiz. Turbulent geopolitical situation boosts the price of the “black” gold.
Today, some American news will become known, including labor market index. The forecast for this index is positive - it is expected that it will be better than the one for the previous reporting period. This factor can trigger the rise in the USD and the decline in oil prices.
Support and resistance
Resistance levels: 63.15 (yesterday’s highs), 64.68 (highs of 16 April), 66.00 (important psychological level).
Support levels: 61.26 (yesterday’s lows), 60.00 (important psychological level), 59.00 (middle line of Bollinger bands).
If current trend continues, it makes sense to open sell positions from the level of 61.20 with the nearest target of 60.00 and the next one at 59.00. In case of breakdown of the level of 63.15 the price can go up to 64.68 and 66.00.