The Brent Oil increased today and has tried to recover after the yesterday’s drop, but failed to reach the 52.76 yesterday’s high. Is moving somehow sideways on the short term, but tries to stay higher despite the Monday’s massive drop. Technically, has shown some exhaustion signs after several false breakouts above the 53.03 static resistance.

Price increased today as the USD/CAD has extended the sell-off, the pair is almost to reach the 1.2460 major static support, a further drop will help the Oil to increase.

Oil could climb much higher because could take advantage of the weaker greenback, as you already know, a poor dollar makes the oil much cheaper for the international customers from outside the United States.

The USD was punished by the Yellen’s speech and by the poor Durable Goods Orders, which have dropped by 6.8% in July, more versus the 6.0% estimate, actually has plunged after the 6.4% growth in the former reading period. The Gold price rallied as well after the USDX’s immense drop.

Brent decreased in the yesterday’s session as the United States Crude Oil Inventories have failed to impress, were reported at -3.3M in the previous week, matching expectations.

Price increased, but personally I believe that it could drop further in the upcoming period after the last failure to climb above the 53.03 static resistance. Has shown some exhaustion signs also when has failed to approach the median line (ml) of the minor  ascending pitchfork. Will drop at least to the 50% retracement level if will touch the lower median line (lml) of the ascending pitchfork. Is moving somehow sideways right now, but the narrow movement can’t last forever. Right now will be better to stay away till we’ll have a clear direction and a fresh trading opportunity

A selling opportunity will appear after a valid breakdown from the ascending pitchfork’s body, while a buying opportunity will appear only if will jump and will stabilize above the warning line (wl1) of the major descending pitchfork.