After plunging into the high 60’s XBRUSD is making a solid comeback. The price managed to break three resistance levels in the last two trading sessions; the previous resistance breakout has not yet been consolidated. Still, the conditions are set for the commodity to do it in the following sessions.
The Bollinger bands are wide, and the price trades in the middle; this will allow the price to continue its uptrend and possibly break the $77.82 barrier.
The moving averages came very close to a crossing; however, the gains obtained recently have prevented the crossing, which indicates that the general trend is upwards. As we mentioned in a previous analysis, the drop is helping the price of Brent Oil recover and potentially reach a new high in more than two and a half years.
The relative strength index is at 51%, which improves the chance of breaking the $77.8 barrier. The price will first have to consolidate the breakout of the $73.74 resistance at our 23.6% Fibonacci retracement. We could see the pair in the $74.5 levels very soon.
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