Brent oil- bulls approach $70 barrier but may consolidate before break

Brent oil approached psychological $70 barrier on Wednesday in extension of rally from $65.93 (28 Mar spike low) that broke through another significant obstacle at $69.70, marked by 200SMA.
Oil prices maintain bullish tone on positive outlook for global supply, supported by production cut and Us sanctions.
Release of API report on Tuesday, which showed unexpected build of American oil inventories was a headwind to bulls, but no stronger negative impact was seen so far.
Focus turns on today’s release of US crude stocks report (EIA) which would prop the price for eventual break through $70 barrier if results  match or fall below forecasts (0.4 mln bls draw is the forecast for today).
On the other side, brent price may show further hesitation to clear $70 barrier if report surprises with strong build of oil inventories.
In addition, failure to close above cracked 200SMA would keep the price in consolidative mode.
Rising 10SMA ($68.00) needs to hold extended dips to keep overall bulls intact.

Res: 69.60; 70.00; 70.55; 70.89
Sup: 69.00; 68.60; 68.00; 67.52