The Brent Oil has plunged and has touched new lows, is trading in the red and should decrease further in the upcoming period. I’ve said in the last articles that a further drop is expected after a crucial breakdown, has dropped like a rock because the fundamental factors have taken the lead.

Remains to see what will happen in the upcoming hours, the FOMC Press Conference could have a major impact on oil, as you already know, a strong dollar makes the oil much expensive for the international buyers from outside the US.

The Brent dropped  also because the United States Crude Oil Inventories have come in better than expected, were reported at -1.7 million barrels in the previous week, even if the economists have forecasted a drop to -2.3 million barrels.

Price has plunged even if the USD has plunged as well, the greenback was punished by the poor US data, the CPI dropped by 0.1% in the previous month, despite that the specialist have expected to see a 0.2% growth, the Core CPI increased only by 0.1%, less versus the 0.2% forecast. The Retail Sales have disappointed as well, the economic indicator has dropped by 0.3%, everyone was expected to see a 0.1% growth, while the Core Retail Sales decreased by 0.3%, even if the economists have expected to see a 0.2% increase.

Price has dropped after the failure to retest the upper median line (uml) of the minor descending pitchfork, has also failed to close near the 50% retracement level, signalling that the bears are in full control.

I want to remind you that the next major downside target will be at the 50% Fibonacci line (ascending dotted line) and at the 38.25 retracement level. Should approach and reach these levels after the failure to approach and reach the median line (ML) of the major ascending pitchfork, has failed to stay above the 61.8% retracement level and above the 53.03 level, so a further drop is expected. I believe that only the fundamental factors could turn the rate to the upside again, but now is unlikely to happen.