The Brent Oil dropped a little today and tested the broken levels. It has rallied in the last three days and now is located much above some very important resistance levels. The breakout needs confirmation before we can say for sure that the rate will resume the upside movement.

Oil price rallied and reached new highs in the yesterday’s trading session also because the USD/CAD dropped towards fresh new lows. I’ve said in the last week that the Loonie could appreciate further versus the greenback on the short term as the USDX may drop further.

The currency pair increased a little only because the dollar index has bounced back today. Technically, the dollar index moves in range on the short term, but the bias remains bearish.

The US Crude Oil Inventories were reported at 3.3 million barrels in the previous week, even if the specialists have forecasted a -0.6 million barrels.

The rate failed to reach and retest the sliding line (sl) of the minor ascending pitchfork and now has managed to jump above the 50% Fibonacci line (ascending dotted line) and above the lower median line (lml) of the minor ascending pitchfork.

I’ve said in the last analysis that a failure to make a valid breakdown below the mentioned dynamic support will force the rate to touch new highs. I’ve also said that the perspective remains bullish on the Daily chart despite the last minor drop.

As you should know, the breakout above the 50% Fibonacci line will confirm a further increase, but we still need a confirmation because this could be a false one if the rate will drop sharply again. I’ve said in the last months that we may have a further increase only if the rate will take out the resistance from the 50% Fibonacci line.