The XBR/USD chart shows a strong rally in Brent crude oil prices on January 2–3, breaking above $76.20 for the first time since mid-October.
According to Reuters, this surge was driven by:
- Economic stimulus measures in China, including wage increases for public servants and a significant boost in funding through treasury bonds.
- Forecasts of a colder winter in the US and Europe, potentially increasing demand for oil products.
According to technical analysis of the XBR/USD chart, the price broke out of a consolidation pattern (highlighted in blue) that had confined it in late 2024.
However, signs of waning bullish momentum are emerging:
- At point B, the price only slightly surpassed the previous high at point A before reversing downward, indicating buyer weakness.
- A bearish divergence is forming between the RSI indicator and points A and B.
These signals suggest that Brent crude oil prices could be vulnerable to a correction, potentially targeting the lower blue trendline as a support level.
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