Oil prices bounce up from $84.70 lows to reach levels past $87.00. (Pivot Orderbook analysis)

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• Oil prices bounce up from $84.70 lows to reach levels past $87.00.
• The Dollar plunges on soft US CPI data.
• Hopes of Fed easing have boosted risk appetite.

The pair currently trades last at 86.33.

The previous day high was 88.65 while the previous day low was 84.88. The daily 38.2% Fib levels comes at 86.32, expected to provide support. Similarly, the daily 61.8% fib level is at 87.21, expected to provide resistance.

WTI prices appreciated on Thursday to hit session highs right above $87 following a 7.5% sell-off over the last three days. The US Oil benchmark, however, has been rejected at $87.25 before pulling back to the $86.50 area.

Consumer inflation eased beyond expectations in October. The monthly CPI increased 0.4%, unchanged from September, against market expectations of a 0.6% advance. Yearly inflation increased by 7.7%, down from 8.2% in September, while the market had anticipated an 8% reading.

The Core CPI, a gauge closely observed by the Federal Reserve to assess inflation trends, accelerated at a 0.3% pace, from 0.6% in September. Year-on-year, the core inflation increased 6,3% from 6.5% in September, while the market has forecasted a softer deceleration, to 6.5%.

These figures suggest that inflation might have peaked and provide some room for the Federal Reserve to consider slowing down its monetary tightening plan. This has brought back the idea of a softer rate hike in December, which has hurt the US dollar, boosting equity markets across the world.

At the same time, the US weekly jobless claims data revealed that 225,000 workers filed for unemployment benefits in the week of November 4, up from 218,000 in the previous month and above the 220,000 expected. These figures add to the evidence that labor market conditions might be loosening, offering further reasons for the Fed to lift its foot off the rate hike pedal.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 86.33 at the time of writing. Pair opened at 84.99 and is trading with a change of 1.58 % .

The pair is trading below its 20 Daily moving average @ 86.72, above its 50 Daily moving average @ 85.52 , below its 100 Daily moving average @ 90.69 and below its 200 Daily moving average @ 97.45

The previous day high was 88.65 while the previous day low was 84.88. The daily 38.2% Fib levels comes at 86.32, expected to provide support. Similarly, the daily 61.8% fib level is at 87.21, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 83.7, 82.4, 79.93
• Pivot resistance is noted at 87.47, 89.94, 91.24

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