Crude oil price declined slightly to a low of $59.4 after soaring to a high of $60.37 yesterday. Will the XBRUSD pair continue to decline?
29 August 2019, OctaFX – The price of crude oil declined slightly in the Asian session. This is after making some significant gains in the American session after the EIA released the inventories of the past week. Data showed that inventories declined by slightly above 10 million barrels.
This was a bigger decline than the consensus estimates of about 2.1 million barrels. In the previous week, inventories were at 2.7 million barrels. The distillate stocks declined by more than 2 million barrels while gasoline inventories declined by more than 2 million barrels.
Crude oil price technical forecast
The price of Brent crude oil declined to a low of $59.4 after soaring to a high of $60.37 yesterday. On the hourly chart below, the pair is trading slightly below the right shoulder of the head and shoulder pattern.
This is usually a signal that the downward momentum will prevail. The price is also between the lower and the middle lines of the Bollinger Bands while the RSI is at 47 moving downwards. There is a likelihood that the pair will continue moving lower, to test the important support of 59.
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