Brent futures are trading on a front foot, just a shy away from $39.00 handle but gains are being capped by concerns over falling demand and strong dollar. Recovers from near 5-DMA levels The bearish momentum ran out of steam as prices neared 5-DMA stationed at $39.23 levels. Analysts say falling US output is supporting prices. However, horrible China data released yesterday triggered concerns regarding falling oil demand. Meanwhile, a 0.20% rise in the USD index is also making it difficult for the futures to retake $39 handle. Traders now await the US government weekly inventory data release. Brent Technical Levels The immediate hurdle is seen at $40.45 (falling trend line resistance on daily chart), above which futures could target 41.02 (Mar 7 high). On the other side, support is seen at 39.23 (5-DMA), which if breached shall open doors for a slide to 38.07 (Dec 24 high). For more information, read our latest forex news.