The bullish tone in oil prices remained intact in early Europe, with prices hitting two-month high of $37.03/barrel levels. Eyes 38.2% Fibo level The futures appear on track to test $37.37 levels (38.2% of Oct high-Dec low) as the optimism triggered by China’s rate cut managed to overshadow the weaker manufacturing PMI release in the world’s second largest economy and largest oil consumer. Nevertheless, the weaker data is ensuring the bulls are having at tough time extending gains above $37 handle. Ahead in the day, the API inventory report in the US and manufacturing PMI releases across Europe and in the US could influence oil prices. Brent Technical Levels The immediate hurdle is seen at $37.37 (38.2% Of Oct high-Dec low), above which the futures could rally to 38.96 (Jan 4 high). On the other hand, a breakdown of immediate support at 36.14 (Jan 29 high) would expose 34.78 (10-MA). For more information, read our latest forex news.