FXStreet reports that economists at Credit Suisse expect the Brent Crude Oil to extend the current consolidation phase before stretching higher. 

“Brent Crude extends its near-term consolidation but maintains its base above the 38.2% retracement of the Q1 collapse at $37.28. Further consolidation should be allowed for below the 50% retracement of the Q1 fall at $43.86. Above here in due course though should see resistance next at $45.18/50 and then more importantly at $48.74, where the 200-day average is hovering, which we expect to cap the market at least temporarily.”

“Near-term support is seen at $37.18/35.37, the May/June price gap, with $33.62 ideally holding further weakness. Only below $28.86 would see the base negated though.” 

“Poor momentum increases the risk $43.86 should continue to cap for now for further consolidation and potentially a deeper setback.”