Oil prices remained mostly unchanged on Thursday as investors awaited updates on the situation in the Middle East, U.S. oil inventory data, and China's stimulus plans. Brent crude was up slightly by 11 cents to $74.33 per barrel, while U.S. West Texas Intermediate rose 8 cents to $70.47 per barrel. Prices had dropped earlier in the week after OPEC and the International Energy Agency lowered their forecasts for oil demand in 2024 and 2025. Concerns about a potential Israeli retaliation against Iran, which could disrupt oil supplies, have eased, but uncertainty remains. Investors are also watching U.S. oil inventory data, with a report expected later today that could influence prices if it shows weak demand. Additionally, U.S. jobless claims data and a possible interest rate cut from the European Central Bank may also impact oil prices. Investors are also looking to see if China will provide more details about its plans to revive its struggling economy.
XBRUSD – H4 Timeframe
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The 4-hour timeframe chart of XBRUSD shows price creating a classic SBR (Sweep-Break-Retest) pattern, with a confluence from the trendline support. Usually, when the break of structure comes with a FVG (Fair Value Gap), it indicates increased volatility as a result of the momentum from the demand zone. Worthy of note also is the presence of a trendline support, as well as the 88% of the Fibonacci retracement tool. These confluences point largely in favor of a bullish reaction from the drop-base-rally demand zone.
Analyst’s Expectations:
Direction: Bullish
Target: 78.90
Invalidation: 69.40
XTIUSD – H4 Timeframe
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Following the sweep of liquidity from the previous low, we see price rush straight up to take out the previous high immediately afterwards. This typical pattern is called the SBR (Sweep-Break-Retest), and is often considered a high-probability pattern. In line with the SBR pattern, we see the demand zone falling right within the 88% of the Fibonacci retracement tool, with a trendline support cutting right through it. My sentiment here is bullish.
Analyst’s Expectations:
Direction: Bullish
Target: 75.59
Invalidation: 65.86
CONCLUSION
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