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BRN is under pressure, moving towards 100-period SMA

BRN is under pressure, moving towards 100-period SMA

Oil prices are under pressure, hovering above the 100-period (~81.264) moving average (SMA) following the release of FOMC minutes which have indicated the potential delay of the highly anticipated Fed rate cuts.

Higher-for-longer interest rates may lead to a stronger USD. This could translate in to BRN moving lower as it becomes more expensive for the buyers.  

On the flip side if the Fed sees enough evidence that inflation is dissipating and proceeds with cutting rates sooner, it may drag the USD down, thus potentially pushing the oil prices higher.

Geopolitical developments in the Middle East are also among key factors which may have significant affect on the oil’s trajectory.


On the technical side…

  • The current price is above all key simple moving averages (21,50 & 100 – period SMAs), indicating a potential uptrend
  • However, a proximity to 21(~$81.146) and 100-period (81.264) SMA may suggest a possible consolidation phase or/and lack of strong directional momentum
  • Relative Strength Index’s (RSI) position at 53.46 underscores the markets neutral position (<30 – oversold, >70 – overbought)
  • The key resistance levels is located at 82.72 while to the downside the 100 ($81.264) & 21($81.146) – period SMAs are set to provide immediate support
  • Breaking below these support levels may drag the BRN lower towards the psychologically important $80.00



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