The energy commodity reached its lowest level since early July 2021. The pair is moving sideways and has not been able to break the 4.028 resistance in our 61.8% Fibonacci retracement, but is up 4.2% today.
The Bollinger bands are very wide and volatility should be high, they continue moving downwards as the price fails to recover. The pair trades closer to the lower band suggesting that the price is relatively low, which should create an opportunity for traders. The resistance at the 4.028 level is key to determining whether or not the price will reverse the downtrend.
The relative strength index is recovering from an oversold status and is currently at 37% which should also give traders some confidence that the price could reverse the general downtrend in the mid-term. The moving averages continue moving down as the pair has lost more than 30% in 16 sessions.
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