Brent Crude Oil chart is showing what appears to be a false break higher as price attempted to reach the 8000.00 level. The POC for the daily chart is placed around 7680.00 where support has formed today and is pushing higher. Resistance can be seen at the 7842.00 level where price broke the trend line. Above this level is the high reached on Tuesday at 7965.80 forming an area of resistance around 8000.00 which extends up to 8047.00.
Support for the pair can be seen around and below the 7600.00 level. A loss of this support could result in a drop to the next support on the daily chart at 7500.00. It is likely that buyers may become interested again at this level as the overarching pattern on the chart is a bullish flag. Any move under 7500.00 could see a quick dip to 7300.00 and put bears in control. The low for August was set at the 7049.50 level ahead of 7000.00.
The EURAUD chart is being influenced by the blue trend line, with a fall under that line in May sending price lower to the 1.5300 area. The retest of the trend line in early July at 1.5887 prevented a move higher until the latter half of August after support was found at 1.5581. The break higher above the trend line last week was retested on Tuesday and price set a higher high each day since. Resistance at 1.6200 needs to be overcome in order to reach higher levels and maintain the control that buyers have gained. The 1.6300 level may create resistance above followed by 1.6420.
Support for the pair can be seen at the trend line and the retest level at 1.6042. A break under this line could hand control back to sellers who would look to reach the initial support of the previous resistance around 1.5887. Should price continue to move lower, another area of support has developed around 1.5703 in July. The lows from August at 1.5582 are a crucial area for buyers to defend or the risk may develop that price falls to the June low of 1.5300.