Brent Oil is into a corrective phase despite today’s minor rebound. Could drop even lower because is hard to believe that will start another leg higher from here. Has plunged in the yesterday’s session and now is very close to reach some important support levels. The corrective phase was natural and expected after the false breakout above the $53.00 per barrel, I’ve said that a false breakout will send the rate down again.

The USD/CAD rebound has signaled a Brent decrease as well, the currency pair managed to climb above the 1.2752 previous high today and could hit fresh new high till the end of the day if the United States data will come in better.

Brent dropped also because the greenback has picked up, as you already know, a stronger dollar makes the oil much expensive for the international customers from outside the United States.

The commodity currencies are going down versus the greenback, the Gold has started a bearish movement and could extend it as the Chinese data have come in mixed today, the New Loans dropped from1540B to 826B, but has come in better than the 810B estimate, while the M2 Money Supply roe by 9.2%, less versus the 9.5% estimate.

You can see that we had several false breakouts above the 53.03 static resistance in the last two weeks, so the bearish momentum is understandable. Remains to see if will find support at the sliding line (SL) because a drop towards the confluence area formed by the sliding line (SL) with the lower median line (lml) is favored.

The corrective phase was expected also because has failed to reach the median line (ml) of the ascending pitchfork. A larger drop will be confirmed after a breakdown outside the ascending pitchfork’s body.

However, we may have a buying opportunity if will retest the lower median line (lml) and will increase again. I’ve said in the last weeks that the rate remains under selling pressure as long as is trading under the 53.03 level and below the 61.8% retracement level, so he could move towards the 50% Fibonacci line (ascending dotted line) after another failure to approach the median line (ML) of the major ascending pitchfork.