Israel is currently fighting on multiple fronts, with conflicts against Hamas in Gaza, Hezbollah in Lebanon, the Houthis in Yemen, and tensions with Iran. Despite the ongoing crisis, financial markets have not reacted with extreme fear. Oil prices have increased but are not as high as expected compared to earlier spikes during the conflict. On Friday morning, Brent crude oil prices stood at $77 per barrel, up from $71 earlier in the week. Market analysts believe several factors, including fears of a potential attack on Iran’s oil infrastructure and news of economic stimulus in China, are supporting oil prices. However, the global economic outlook remains weak, limiting a more significant surge in oil prices. A slow recovery in Western economies and China’s ongoing property crisis have kept oil demand lower. There is also an expectation that OPEC might increase oil production in December, which has contributed to keeping prices in check.
XBRUSD – H4 Timeframe
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The 4-hour timeframe of XBRUSD shows a classic break out of a previous wedge pattern. With the intersection happening smack in the middle of two Daily timeframe pivots. The stochastics indicator is also overbought, adding some degree of confluence to the bearish sentiment. It is expedient though to seek lower timeframe entry confirmation before squeezing the trigger for a sell.
Analyst’s Expectations:
Direction: Bearish
Target: 72.32
Invalidation: 79.50
XTIUSD – H4 Timeframe
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The 4-hour timeframe chart of XTIUSD presents a similar setup to the scenario we saw on Brent earlier. In the case of WTI though, price is crawling into the supply zone overlapping the pivot region, which is generally indicative of a key reversal clue. In addition, the stochastics indicator is overbought, with a trendline resistance serving as a confluence for the bearish sentiment.
Analyst’s Expectations:
Direction: Bearish
Target: 68.87
Invalidation: 76.81
CONCLUSION
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