The two-week increase in oil, based on the current situation, is over.
The second reason for the drop in oil prices during the end of last week is the strengthening of the US dollar which makes oil more expensive for buyers using other currencies.
Most likely, the bearish trend will continue this week since the released data on reserves failed to reverse the emerging downward trend last Thursday, although the report of the US Energy Ministry indicated a decline in commercial oil reserves worth 6.3 million barrels.
A breakout of the 42.30 area by the WTI brand will lead towards a direct course through the larger support area of 39.95 and 38.00.
The Australian dollar is still trying to hold against the US dollar and received support after the decision of the Reserve Bank of Australia last week to leave rates unchanged.
Inflation data in China did not bring surprises.
According to the report, China's consumer inflation in June this year remained unchanged from the May level.
The European currency is limited to trade with the US dollar amid lacking important fundamental data.
A breakthrough in support at 1.1380 today will lead to the continuation of a downward short-term trend with the rising levels of 1.1350 and 1.1320.
