Brent Oil posted little gains today and is fighting hard to recover after the yesterday’s sell-off. Technically is somehow expected to drop much deeper on the short term after another failure to close above the 53.03 static resistance. Is moving somehow sideways on the Daily chart and maybe we should wait for a clear direction and for a fresh trading signal.

Price dropped even if the USD/CAD has plunged in the last few days, remains to see what will happen after the release of the Canadian Retail Sales data. Brent has signaled an exhaustion lately and a poor Canadian data will add more selling pressure. A USD/CAD rally will send the oil price towards new lows. Brent increased today, but now is losing altitude and is very close to erase the morning gains.

The Canadian Retail Sales could increase by 0.2% in July, less versus the 0.6% growth in the former reading period, while the Core Retail Sales are expected to increase by 0.0% versus a 0.1% drop in the former reading period. The Oil will drop much deeper if the Canadian data will disappoint later, the US is to release some data as well, so you should keep an eye on the economic calendar.

Price retested the 53.03 static resistance and now could drop much deeper in the upcoming days. The next downside target will be at the lower median line (lml) of the ascending pitchfork. Technically is expected to drop and even to breakout from the ascending pitchfork’s body after the failure to approach and reach the median line (ml).

Has found strong resistance at the 53.03 horizontal obstacle, signaling that the bulls are too exhausted. Will breakdown from the ascending pitchfork if will touch the lower median line (lml). I’ve said in the previous articles that the price remains under selling pressure as long as is trading under the 53.03 horizontal resistance and below the 61.8% retracement level. Right now we should wait for a fresh trading signal.