WTI’s trim some of their weekly losses, bolstered by a weak US Dollar. (Pivot Orderbook analysis)

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• WTI’s trim some of their weekly losses, bolstered by a weak US Dollar.
• Easing inflation in the United States undermined the US Dollar as traders brace for a less aggressive Fed.
• China’s refineries asked Saidu Aramco to reduce December’s crude-oil volumes, capping WTI’s recovery.

The pair currently trades last at 87.58.

The previous day high was 86.63 while the previous day low was 84.06. The daily 38.2% Fib levels comes at 85.65, expected to provide support. Similarly, the daily 61.8% fib level is at 85.04, expected to provide support.

Western Texas Intermediate (WTI), the US crude oil benchmark, is recovering some ground during the North American session following the United States (US) inflation report that informed prices are easing. Another factor that boosted the appetite for Oil is China’s easing Covid-19 restrictions, underpinned oil prices. At the time of writing, WTI is trading at $88.29 per barrel, gaining 2.37%.

Sentiment remains positive as a cooler-than-expected US Consumer Price Index (CPI) information showed that the US economy is feeling the impact of the Federal Reserve (Fed) monetary policy. The headline inflation came at 7.7% YoY, and the core CPI fell to 6.3% YoY, both below expectations. Following the release, speculations piled up that the Fed might gradually increase the Federal Funds rate (FFR) instead of raising rates on 75 bps ones. The reflection is that odds for a Fed 50 bps rate hike in December jumped from 50% to 85%.

Therefore, the US Dollar (USD) weakened across the board, as the US Dollar Index plunged 3.76% in the week, undermined by US Treasury yields, plummeting almost 30 bps.

Aside from this, Chinese officials announced that quarantines for inbound travelers would be cut by two days to five, a sign cheered by investors.

According to Reuters, several Chinese refiners asked Saudi Aramco to reduce December-loading crude oil volumes, meaning that China’s economy is accounting for a deceleration as it’s struggling to avoid a recession.

WTI is neutral-biased, as shown by the daily chart. It should be noted that Friday’s daily high at $90.08 tested a one-month-old downslope trendline drawn from September highs. However, WTI was quickly rejected and retreated above November’s 10 daily high at $87.31. The Relative Strength Index (RSI) in bullish territory suggests Oil prices could increase. However, WTI needs to clear the $90.00 mark, alongside the 100-day Exponential Moving Average (EMA) at $91.07, to turn the bias neutral to upwards.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 87.58 at the time of writing. Pair opened at 85.65 and is trading with a change of 2.25 % .

The pair is trading above its 20 Daily moving average @ 86.59, above its 50 Daily moving average @ 85.51 , below its 100 Daily moving average @ 90.52 and below its 200 Daily moving average @ 97.45

The previous day high was 86.63 while the previous day low was 84.06. The daily 38.2% Fib levels comes at 85.65, expected to provide support. Similarly, the daily 61.8% fib level is at 85.04, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 84.26, 82.87, 81.69
• Pivot resistance is noted at 86.83, 88.02, 89.41

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