Brent technical analysis: Looks south after bearish outside day

Brent created a bearish outside day on Monday.
Prices risks falling to recent lows below $69.00.

Omkar Godbole FXStreet Contributor

Brent oil could retest and may possibly break below the recent low of $68.88, having charted a bearish outside day on Monday.

The black gold had jumped to a high of $72.56, having persistently defended the 50-day moving average (MA) last week. The bounce, however, was short-lived with the price falling all the way back to $69.70, possibly due to trade tensions and risk aversion.

The drop from $72.56 to $69.70 engulfed the price action seen on Friday. Essentially, the bounce from the stiff 50-day MA support ended up creating a bearish outside-day candle.

So a deeper drop could be in the offing in a day or two and the selling could gather pace below Monday’s low of $69.74. As of writing, oil is changing hands at $70.16 per barrel.

Daily chart

Trend: Bearish

1. R3 74.1
2. R2 73.1
3. R1 71.27
PP 70.27
1. S1 68.44
2. S2 67.44
3. S3 65.61

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.