U.S. crude oil prices were set to make a small weekly gain as of Friday, with Israel preparing to respond to Iran's recent missile attack. So far this week, U.S. oil has gone up by 1%, while the global benchmark, Brent, has risen by 0.8%. Since Iran's attack on Israel last week, oil prices have jumped over 10%. However, experts note that keeping oil prices rising has been challenging without new reasons to drive the increase. Currently, U.S. crude oil is priced at $75.21 per barrel, and Brent is at $78.77. Traders are worried that if Israel targets Iran's oil industry, it could lead to disruptions in oil supplies from the Middle East. The U.S. government has reportedly urged Israel to avoid hitting Iran's oilfields, with some suggesting they focus on refineries instead to minimize global impact.
XBRUSD – H3 Timeframe
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The 3-hour timeframe chart of Brent (XBRUSD) shows a double break of structure pattern, with the recent peak falling right within the daily timeframe pivot region. Based on this, I would expect the price action to reach for the supply zone, and thereafter trigger a bearish momentum. Don’t forget to check for a confirmation before entry.
Analyst’s Expectations:
Direction: Bearish
Target: 75.85
Invalidation: 81.50
XTIUSD – H3 Timeframe
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US Oil (XTIUSD) seems to have printed a proper change of character, with the confluence from the double break of structure, it seems valid to expect a bearish turn once price reaches the supply zone. The fact that the rally-base-drop supply zone overlaps the daily timeframe pivot is a critical confluence in favor of the bearish sentiment.
Analyst’s Expectations:
Direction: Bearish
Target: 72.14
Invalidation: 78.70
CONCLUSION
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