Yesterday the price of Brent crude oil was trying to recover but could not grow above the level of 39.36, and today continued falling.
The price was pressured by information that the US Congress reached an agreement on lifting the 40-year ban on oil exports. At the same time, the price remains under pressure amid approaching Fed meeting, where the regulator is going to make its decision on interest rates. Markets currently evaluate the probability of an interest rate hike at 81.5%. If positive decision is made, markets’ attention will be focused on the Monetary Policy Statement that is going to determine future direction in the USD and the price of oil.
Support and resistance
On the 4-hour chart, the price continues falling along a descending channel.
MACD’s histogram remains below the zero line, while Stochastic lines are directed down indicating a fall continuation.
Support levels: 36.20, 35.00, 32.75.
Resistance levels: 39.26, 42.00, 45.00.
Short positions can be opened from the level of 36.20 with targets at 35.00, 32.80 and stop-loss at 36.50.
Long positions can be opened above the level of 39.30 with targets at 42.00, 45.00 and stop-loss at 39.00.