Headlines on Thursday revealed that Israel may have violated the recent Gaza ceasefire just one day after it began, with reports of tactical military actions targeting areas not included in the agreement. Meanwhile, OPEC+ postponed its output policy meeting from Sunday to December 5, citing scheduling conflicts with Kuwait's Gulf Cooperation Council meeting.
Crude oil prices are struggling, with WTI trading at $68.76 and Brent Crude at $72.54. The oil market faces challenges as global demand slows and non-OPEC suppliers increase production, raising concerns for the group's future. North Sea oil loadings for January are set to drop to their lowest level since October, adding to the uncertain outlook.
The US Dollar Index (DXY) bounced off a technical support level, even as US markets are closed for Thanksgiving. This bounce is partially driven by European concerns, where French Prime Minister Michel Barnier warned of instability if France's Parliament fails to pass its budget. Additionally, reports highlight that China's refiners are snapping oil from the Middle East and Africa as Iranian supplies become more expensive due to stricter US sanctions.
XBRUSD – H3 Timeframe
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The 3-hour timeframe chart of Brent crude shows the price approaching a confluence of two resistance trendlines after breaking below the previous low. The confluence region also falls within a supply zone near the 88% Fibonacci retracement level. The clear sentiment in this case is bearish.
Analyst's Expectations:
Direction: Bearish
Target:71.45
Invalidation:75,26
XTIUSD – H3 Timeframe
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WTI crude's analysis resembles the Brent analysis above. The price action features the same confluence of resistance trendlines and the supply zone at the 88% Fibonacci retracement level. The verdict is bearish.
Analyst's Expectations:
Direction: Bearish
Target:67.41
Invalidation:71.65
CONCLUSION
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