WTI picks up bids to refresh intraday high, braces for the second weekly gain. (Pivot Orderbook analysis)

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• WTI picks up bids to refresh intraday high, braces for the second weekly gain.
• DXY pares the biggest weekly gain in seven ahead of US NFP.
• China-inspired optimism in Asia, mildly bid US stock futures add strength to the Crude Oil’s run-up.
• Strong US jobs report could probe energy bulls.

The pair currently trades last at 89.36.

The previous day high was 88.99 while the previous day low was 86.98. The daily 38.2% Fib levels comes at 87.75, expected to provide support. Similarly, the daily 61.8% fib level is at 88.22, expected to provide support.

WTI takes the bids to refresh intraday high near $89.30 heading into Friday’s European session. In doing so, the black gold cheers the broad US dollar pullback amid cautious optimism in the Asia-Pacific region.

The US Dollar Index (DXY) retreats from a fortnight high to pare the biggest weekly gain in seven, refreshing intraday low around 112.55 by the press time.

The greenback’s latest losses could be linked to the hopes of witnessing positive news surrounding the Russia-Ukraine tussles as leaders from Germany and China meet. Also, the People’s Bank of China’s (PBOC) efforts to defend the Chinese Yuan (CNY) join the pre-data consolidation to add strength to the risk-on mood.

Additionally, news from Bloomberg that the US audit inspections in China finished early joined chatters surrounding relaxation in China’s covid rules also seemed to have favored the recent risk-on mood and the WTI Crude Oil prices.

Amid these plays, the US Treasury yields grind higher while the S&P 500 Futures print mild gains to print cautious optimism in the market. Also, the Asia-Pacific equities remain firmer, led by Hang Seng’s 5.75% run-up. It should be noted that the MSCI’s Index of Asia-Pacific shares outside Japan rises more than 1.0% whereas Japan’s Nikkei drops 1.85% on a day at the latest.

It should be noted that Europe’s oil embargo and the US readiness for more release from the Strategic Petroleum Reserve (SPR) challenge the WTI Crude Oil traders.

Elsewhere, Reuters said, “Underscoring demand concerns, Saudi Arabia lowered December official selling prices (OSPs) for its flagship Arab Light crude to Asia by 40 cents to a premium of $5.45 a barrel versus the Oman/Dubai average.” The news also added that the cut was in line with trade sources’ forecasts, which were based on a weaker outlook for Chinese demand.

Moving on, the US jobs report and geopolitical headlines surrounding Russia will be closely watched for fresh impulse.

Also read: Oil market developments: Saudis to lower prices for Asia, US Biden expected to release more SPR

A downward sloping resistance line from August 30, near $89.55, restricts the WTI Crude Oil’s short-term upside ahead of the 100-DMA hurdle surrounding $91.25. However, the buyers remain hopeful unless the quote stays beyond the 21-DMA and a five-week-long support line, respectively near $86.80 and $85.60.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 89.36 at the time of writing. Pair opened at 87.36 and is trading with a change of 2.29% % .

The pair is trading above its 20 Daily moving average @ 86.66, above its 50 Daily moving average @ 85.79 , below its 100 Daily moving average @ 91.43 and below its 200 Daily moving average @ 97.41

The previous day high was 88.99 while the previous day low was 86.98. The daily 38.2% Fib levels comes at 87.75, expected to provide support. Similarly, the daily 61.8% fib level is at 88.22, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 86.56, 85.77, 84.56
• Pivot resistance is noted at 88.57, 89.78, 90.58

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