The price of Brent crude was unchanged today ahead of the Iran sanctions. However, should traders expect the downward trend to continue? Gain insight into the following XBRUSD technical analysis.
November 5, OctaFX – The price of crude oil was unchanged in the Asian session. This is as traders prepare for the Iranian sanctions that will start today. Iran is the third biggest oil producer in the OPEC producing almost 4 million barrels every day.
When the sanctions kick in, the country will not be able to trade in the crude oil market which relies extensively on the dollar. Most western firms will avoid the country with the goal of avoiding US sanctions and fines.
The reason why there was no major movement in the price was that these effects were already factored in during the trading session.
XBRUSD Technical Analysis: Will the Downward Trend Continue?
The price of Brent crude was unchanged today ahead of the Iran sanctions. The XBRUSD pair traded at 72.36. This was near to Friday’s low of 72.30, which was the lowest level since August 27.
The double EMA of the pair shows that the downward trend is likely to continue as traders start looking at the effects of Iranian sanctions. The RSI is currently at 25. While this is the oversold level, it is also an indication of the strength of the downward trend.
If the downward momentum continues, it will likely hit the 70 level.
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