The rate has decreased a little today and has slipped again below the $46.00 per barrel, but he could increase in the coming days if the Loonie will have enough energy to climb higher versus the greenback. The Brent Oil has managed to bounce back in the yesterday’s trading session and has erased the last day’s losses, has managed to jump again above an important dynamic level, signalling that we could climb much higher on the short term. The current rebound was somehow expected after the impressive decrease, personally I’ve expected a retest of the medium term broken uptrend line before will start a larger decrease.

The rate has increased also because the Loonie has managed to increase sharply versus the greenback, technically, has rebounded because we had a false breakout ad because has reached an important dynamic support. The Oil price has fallen significantly after the rumors that the OPEC will fail once again to cut the oil production, remains to see what will happen in the coming meeting. The Oil has slipped lower in the last hours as the United States Crude Oil Inventories have come in better than expected, the Crude Levels were reported at 5.3 million barrels in the previous week, higher versus the 0.4M estimate.

You can see that the price has found support above the 38.2% retracement level and now is fighting hard to rebound and could approach the 50% retracement level, could increase to test and retest the broken uptrend line. The rate is expected to increase in the coming days because the bears weren’t strong enough to drag the rate below the 38.2% retracement level and most important below the 50% Fibonacci line (ascending dotted line). I’v said in my analysis that the rate will start a larger decrease if the price will have enough directional energy to take out the critical support from the 50% Fibonacci line, however the rate is expected to drop again if the OPEC will fail to cut the oil production. Technically the rate is expected to drop deeper after the breakout below the uptrend line.