The USOil index continues to respect the 71.610 supply level, reinforcing the ongoing bearish momentum. This supply zone has acted as a key resistance, driving a sustained downward move. The price is now on track to test the next critical swing low at 63.650.
The long-term trend for USOil index remains firmly bearish, as evidenced by a series of lower highs on the daily chart. The 71.610 swing low, which formed after the last test of the bearish channel, confirmed a breakout to the downside. This level now serves as a strong resistance zone, further supported by its alignment with a fair value gap, marking a critical point for any potential reversal attempts.
The Williams Percent Range indicator indicated overbought conditions at this level, while the 30-period Moving Average acted as resistance, further solidifying the bearish bias.
USOil Short-Term Trend: Bearish
In the short term, the market structure has clearly shifted to bearish. The previous bullish order block that formed during a minor uptrend has been fully invalidated following the sharp decline after testing the 71.610 supply level. Both the 30 and 50-period Moving Averages have crossed above the 4-hour candles, suggesting continued selling pressure. The price is now targeting the 65.650 demand zone, with further downside possible if the bearish trend continues. Traders should monitor forex signals closely for further confirmation of the market’s direction.
Note: Learn2.trade is not a financial advisor. Do your research before investing your funds in any financial asset, product, or event. We are not responsible for your investment results.
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