Daily Market Analysis and Forex News
Brent bulls halted from reaching $90, for now
Brent is taking steps towards being restored to $90.
Having found support at its 50-day simple moving average (SMA), this week's recovery in the global oil benchmark has apparently been enabled by the:
- softer US dollar
- declines in US stockpiles
Brent is now on the cusp of its first weekly advance in 3 weeks.
For the present moment, Brent bulls are apparently paying little heed to concerns over slowing US growth (lower demand for oil), and the threat of higher-for-longer Fed rates, in light of yesterday's (Thursday, April 25th) US GDP release.
However, from a technical perspective, Brent's advance is currently being halted at its 21-day simple moving average, as markets await the release of a key US inflation data.
Brent may yet retain the $90 handle before the weekend if shown lower-than-expected PCE Deflators, along with a bullish outlook out of the oil majors.
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