The Brent Oil drops and resumes the Friday’s bearish candle. A further decrease will invalidate the breakout above a crucial resistance level. Oil shows exhaustion signs on the Daily chart, but is premature to talk about a reversal on the short term as the rate is still located in the buyer’s territory. Could come down only to retest some support levels (resistance turned into support) before will try to resume the upside movement.

Has dropped even if the USD/CAD stays lower, the pair is trading in the red today and tries to erase the Friday’s gains. The USD/CAD wasn’t impressed by the USDX’s minor rebound, we’ll see what will happen in the upcoming days because the USD is oversold.

The greenback needs a bullish spark from the US economy, but I’m afraid that the numbers will continue to disappoint. The Brent drops maybe also because the United States Crude Oil Inventories have come back in the positive territory after more than 2-months. Some positive Crude Levels in the former week will help the sellers to redeem more ground on the short term.

The Brent has failed to stay above the warning line (wl1) and now is going down again. Has slipped much below the 61.8% retracement level and now is approaching the 53.03 static support. Technically its shows exhaustion signs and a potential reversal on the short term because the rate failed once again to approach the median line (ml) of the ascending pitchfork. We’ll have a selling opportunity only if will escape from the ascending pitchfork’s body.

Right now will be better to stay away because we don’t have any trading opportunity. A buying signal will appear after a valid breakout above the first warning line (wl1) of the ascending pitchfork.

Price could develop a Rising Wedge pattern on the short term, we’ll have a reversal on the short term if this chart pattern will be confirmed. The Brent Oil could move sideways in the upcoming weeks and months because I don’t believe that will have enough energy to move in one direction.