Price has once again fall to key support, where price is currently testing this level. Despite the US dollar shooting higher, oil has remained very resistant to a bearish breakout.
Scenario One (Bearish Breakout): Price breaks major support of the bullish channel
Scenario Two (Bullish Bounce): Price bounce from major support, moving to the upside.
Comment: Despite USD pushing much higher, the resistance of the oil to break this major support level indicates the buyers are still bullish. At least for the time being, as the sellers could bring a lot of volatility in the coming days a head, as USD sets new yearly highs.
Very good observation. We have an identical outlook, looking at a more wider time frame (1W) where if 64.40 holds, it will be a Higher Low on the 1W Channel Up and we will soon seen 71 and 72. If not we will see 60.