The US dollar was trading at the end of the week with a decrease due to a weak macroeconomic statistics, published the day before, significantly reduced the probability of Fed rate increase in the coming future. Weakening dollar stimulates the growth of the market of "black gold", as it makes oil cheaper for foreign currency investors.
Brent oil quotations continued to rise on Friday. Oil managed to recover to 0.26%. The price has broken the levels of 47.00 and 47.50. By the end of trading Brent tested the level of 48.00. Resistance is at 48.50, support - at 48.00.
MACD Histogram in the negative zone. Histogram indicator grew, confirming the current growth. RSI close to overbought. If the oscillator will enter the overbought zone, we get a continuation of the growth. Brent struck 200 moving average and close to the moving averages 50 and 100. If the oil price consolidates above the moving averages 50 and 100, the customer position will grow, it could return to growth of oil quotations.
Oil is forecast for today
A break below 48.50 could send oil quotes down to the support level of 46.50. On the other hand, is expected to return to growth, if the price is to consolidate above 49.50.
Source Fort Financial Services