XBRUSD broke the $72 mark and almost made it to $73 a barrel in yesterday's trading session. There is a risk of a pullback as the relative strength index is about to enter an overbought status; however, we have seen the pair enter an overbought status and staying there for up to 11 sessions in the past.
The Bollinger bands are opening aggressively, and this allows the pair to continue its uptrend. We expect high volatility in the upcoming trading sessions and a potential new high in more than two years.
Price continues trading above our short and long-term moving averages, strengthening the upward trend; however, the price trades close to the upper Bollinger band, suggesting that the price is close to being considered relatively high.
Our parabolic SAR indicator also suggests that the uptrend will continue, and the Ichimoku cloud is left way behind. If the price finds a pullback, we believe that it can find support at the 23.6% Fibonacci Retracement which is at $70.01
In the last 16 sessions, the pair has only had three losing days, and these losses were not significant.
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