Brent crude oil slipped almost 5% in just one day starting a downward retracement after the sharp buying interest. Meanwhile, the U.S. dollar experienced a volatile day. FOMC minutes failed to boost the dollar ahead of the ADP employment change and the NFP figure.
Brent Crude Oil – Technical Outlook
The substantial mover of the day was the oil, which plunged almost 5%, pausing the recent bullish run, as it was hurt by the OPEC exports climbing. The Brent crude oil rebounded on the key resistance level of $48.90 which coincides with the 50-day SMA. The crude oil slipped for the first trading session after ten green days. Slightly below the current market price, the $44.50 barrier will be the first obstacle for the bears.
On the short-term timeframe, technical indicators seem to be in agreement that the previous tendency finished and now there is some downside potential movement as the oil is not out of momentum, yet. The MACD oscillator has stopped the rising move in the negative path and is holding below the zero line. Also, the RSI indicator slipped to the downside and fell beneath its mid-level.
Read the full daily financial markets report on JFD Research.