Oil Is Ready to Continue Falling

Brent prices remain rather volatile. Investors are quite emotional and ready to respond to any news somehow relating to the commodity market.

The key highlight of this week will be the resumption of US-China trade talks. The National Day of the People’s Republic of China celebrations are over, so everyone is back to work, including policymakers. This may add a little volatility to the oil, although no one should expect any significant progress from the talks – the parties have been negotiating for ten months and there is surely more to come.

On Friday, the OPEC and OPEC+ monitoring committee will have the meeting. As a rule, the committee discusses some technical issues, such as oil production parameters of the countries acceded to an agreement to freeze the oil output, global demand and supply numbers, and some other aspects. If there are no comments that market players may find surprising, oil prices may completely ignore the event.

EURUSD in charts

In the H4 chart, Brent is forming the first rising impulse with the target at 60.25. After that, the instrument may start a new correction towards 58.50. Later, the market may form one more ascending structure to break 61.25 and then continue trading upwards to reach 64.06. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving directly upwards. The line is expected to break 0 and boost the uptrend.

As we can see in the H1 chart, Brent has completed the second rising impulse along with the correction; right now, it is forming the third rising impulse to reach 60.25. As a result, there will be the first five-wave structure. After reaching this target, the pair may start another correction towards 58.50 and then form one more ascending wave to reach 61.25. And that’s just a half of the second impulse wave; the predicted target is at 64.06. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving directly upwards to confirm further uptrend.