The price of Brent crude oil was falling since the middle of last week. After the failure to consolidate at $66 per barrel (the highest level since 25 May), the price started falling amid overall strengthening in the USD. Extra pressure was added by the news that Libya has increased its oil output to 500 thousand barrels per day.
The news that is due today is unlikely to affect the price of Brent.
Support and resistance
On the four-hour chart the price broke the bottom band of Bollinger indicator, demonstrating probability of upward correction to 64.60. MACD histogram is in the negative zone but its volumes are decreasing, which could be a signal of the price reversal. An upward movement can be expected after consolidation above 65.30, with a target at 66.20.
Resistance levels: 64.60, 65.30, 66.20 and 67.00.
Support levels: 63.25, 62.30, 60.80 and 60.00.
Sell positions can be opened after consolidation of the price below the level of 63.25. In case of this case Brent can go down to 62.30. The short-term target of the sellers is the level of 60.80, the lows of mid- AprilPublication source