Brent Oil dropped today and resumed the yesterday’s minor bearish candle. Actually, we had an indecision yesterday, price failed to resume the last day’s momentum and now is pressuring a dynamic support again.

A valid breakdown will signal a further drop on the short term, it could resume the corrective phase if the USD/CAD will resume the upside movement. Brent Oil is under some selling pressure after the failure to approach and reach the 71.37 swing high and some important resistance levels.

Most likely we’ll have a high volatility on the oil price as the US and Canada are to release high impact data. The Canadian Trade Balance could remain in the negative territory, the deficit could decrease from 3.2B to 2.5B in January, while the Labor Productivity may increase by 0.1% after the 0.6% drop in the former reading period.

The BOC is expected to maintain the Overnight Rate unchanged today, at 1.25%, but you should be careful because the BOC Rate Statement could bring some volatility.

The Oil price could hit new lows if the United States Crude Oil Inventories could be reported at 2.6M in the previous week, but a major increase will send the price down on the short term.

The rate decreased and is pressuring the 150% Fibonacci line (ascending dotted line) and the 65.00 psychological level.

Will drop further if will fail to stay above the 150% Fibonacci line, the next major downside target will be at the sliding line (SL2) and the next one at the first sliding line (SL1). It could drop after the failure to approach and reach the 100% Fibonacci level and the 50% Fibonacci line (ascending dotted line).

However, a larger drop will be confirmed only after a breakdown below the median line (ML) of the major blue ascending pitchfork.