Brent futures extended gains to a 7-week high of $36.96/barrel ahead of the release of the US weekly oil rig count data from Baker Hughes.
Eyes 38.2% Fibo level
Prices appear on track to test $37.50 (38.2% Fibo of Oct high-Jan low), especially if the Baker Hughes report shows another drop in the US oil rig counts. The war between bulls and bears ended yesterday after prices closed on a higher note for the second straight day.
As of now, the prices are hovering around $36.50/barrel. Strength in the US dollar following the GDP report release appears to have stalled the rally in oil.
Brent Technical Levels
The immediate resistance is seen at 37.50, above which prices could rise to 39.71 (100-DMA). On the other hand, a breakdown of immediate support at 35.71 (Feb 18 high) would open doors for a drop to 34.69 (5-DMA).
(Market News Provided by FXstreet)