Brent Oil increased and is very close to take out the near term dynamic resistance. Remains to see what will really happen in the upcoming hours because the FOMC Meeting Minutes could shake the markets and could ruin the short term bullish perspective. You should know that the price remains bullish on the Daily chart as we don’t have any reversal signs.

Brent has decreased a little in the last days, but this could be only temporary after the amazing rally. Price has come down to test and retest a major dynamic support (resistance turned into support) and now seems determined to resume the upside movement.

Technically, it is expected to climb much higher in the upcoming period because has managed to take out crucial resistance levels. Only a failure to close above the 64.92 previous high will signal an exhaustion and a potential drop in the upcoming weeks.

Brent Oil has taken advantage of the weak dollar, so a sluggish USD makes the oil much cheaper for the international buyers from outside the United States. Brent should climb much higher as the US Crude Oil Inventories have come in worse than expected, were reported at -1.9 million barrels in the previous week, much below the -1.4M estimate.

You can see that the rate has found support at the sliding parallel line (SL) of the major blue ascending pitchfork and now is fighting hard to take out the dynamic resistance from the 350% Fibonacci line (descending dotted line). You can see that the 350% line represents a very strong resistance, price failed to stabilize above this upside obstacle. A valid breakout will signal an increase at least till the 64.92 previous high. The perspective remains bullish as long as the rate is trading within the ascending pitchfork’s body, only a breakdown from it will signal a larger drop in the upcoming period.

A buying opportunity could appear after a valid breakout above the 350% line and after  a minor drop towards the SL and towards the lower median line (lml) of the minor ascending pitchfork.