After dropping sharply after the Energy Information Administration (EIA) released inventory data, crude oil price rose slightly to $72. What is next? Gain insight into the following XBRUSD technical forecast.
November 8, OctaFX – The data showed that the inventories were higher than what most traders were expecting. In the past week, inventories rose to 5.783 million barrels, which was higher than the 2.433 million barrels that traders were expecting.
This data came hours after API released the inventory numbers of 7.83 million barrels. The inventories have been increasing in the past weeks as companies prepared to fill the gap left by Iran.
XBRUSD Technical Forecast
The price of Brent dropped sharply yesterday after the inventories data. It reached a low of $71.35, which was the lowest level since Tuesday. Overnight, the XBRUSD pair rose slightly to 72.
On the four-hour chart, the pair’s Relative Strength Index has risen from a low of 23 to the current 43. The Bears Power strength has weakened while the ADX is currently at 17. This data show that the pair has likely found a floor and that it could move higher.
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