The Brent Oil dropped and resume the yesterday’s bearish candle. However, it remains to see what will really happen in the upcoming hours as the fundamental factors could take the lead again on the short term. Price decreases after the false breakout above two important resistance levels. A minor drop was somehow expected after the impressive rally, so this minor retreat is natural. Remains to see how long the retreat will be because the perspective remains bullish on the Daily chart despite a minor drop.

Brent Oil increased as much as $70.59 per barrel but failed to stabilize above the 70.00 psychological level, but it could climb higher if the Loonie will be boosted by the BOC later. We may have a high volatility on the USD/CAD later as the Bank of Canada will release the Overnight Rate, which is expected to be increased from 1.00% to 1.25%. The BOC Press Conference and the BOC Rate Statement could bring some action on the oil price as well, so maybe will be better stay away from this USD/CAD and from Oil.

The Brent Oil could plunge if the BOC will disappoint later and if the greenback will receive support from the United States data.

The rate has found major resistance right above the median line (ml) of the minor ascending pitchfork, above the 100% level and above the 50% Fibonacci line (ascending dotted line) of the major blue ascending pitchfork. Price has shown some exhaustion signs after the failure to reach the sliding line (sl) of the minor ascending pitchfork. Technically, it should drop towards the lower median line (lml) of the minor ascending pitchfork, but only a median line (ml) retest will confirm this. However, the rate will become strongly bullish again only after a valid breakout above the mentioned resistance levels. The oil price rallied in the last period also because the US dollar has depreciated aggressive on the short term versus all its rivals.