The price of Brent crude oil corrected up from its middle of January lows amid falling USD. The Dollar was pressured by poor data coming out from the US lately and which significantly reduced the probability of monetary policy tightening this year.
However, the price remains under pressure due to supply excess, which is exacerbated by increasing output from main exporting countries and by the slowing Chinese economy. At the same time, a conflict escalation between Saudi Arabia and Iran could support the price.
Today attention needs to be paid to the US labour market data that could determine Dollar’s dynamics in the near future.
Support and resistance
In the medium-term, the price is expected to remain in a wide sideways range between the levels of 27.05 and 38.70. A breakout of the upper border of the channel would allow the price to grow to 47.05, 50.00, and 51.00.
Support levels: 32.00, 28.20, 27.05, 25.55, 22.15, 20.00, 18.30.
Resistance levels: 34.50, 35.80, 38.70, 42.10, 43.15, 47.05, 51.00.
Pending buy orders can be placed at the levels of 27.05, 25.55 with targets at 38.70, 47.05 and stop-loss at 24.90.