Brent crude is trading at an important long-term rising trendline which acts as a solid support at the moment.
The 1-hour chart shows a nice retracement today, signaling further strength in the price from a technical standpoint. The formed a hidden just before the spike.
The chart shows the USD index (inversed) and Brent crude. The recent up-move in Brent can be partly explained by the downtrend in the US dollar .
However, notice that Brent is closer to its June highs than the USD is to its June lows, signaling a slight divergence.
Recent reports suggest oil demand to rebound despite the spike In COVID-19 cases.
China's crude oil imports of 11.93 million bpd also hit a record high in June.
UPCOMING ECONOMIC REPORTS:
The US Crude Oil Inventories report is scheduled for release tomorrow (July 08) at 15:30 GMT with a forecast of a -3.2 million barrels. The previous release showed a fall of 7.2 million barrels.
=== SUMMARY ===
I remain on Brent crude as long as it trades above the rising trendline.
Our previous post on Brent suggested taking a long position at the $39 pullback which is in a nice profit so far.
A close above $43.50 paves the road to $50.
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