The oil price has printed a fresh intraday low at $75.80 amid a risk-off market mood ahead of US NFP data. (Pivot Orderbook analysis)

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• The oil price has printed a fresh intraday low at $75.80 amid a risk-off market mood ahead of US NFP data.
• West Texas is auctioning in a markdown phase after Wyckoff’s Inventory Distribution breakdown.
• The 50-period EMA is acting as a major barrier for the oil bulls.

The pair currently trades last at 75.83.

The previous day high was 77.4 while the previous day low was 75.16. The daily 38.2% Fib levels comes at 76.02, expected to provide resistance. Similarly, the daily 61.8% fib level is at 76.55, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, has refreshed its day’s low at $75.80 in the early European session. The oil price is facing the heat as western central banks have hiked their interest rates further to tame soaring inflation. The asset is expected to test Thursday’s low around $75.30.

The US Dollar Index (DXY) is displaying a lackluster performance after reaching to near 101.55 and is awaiting the release of the United States Nonfarm Payrolls (NFP) data for fresh impetus.

On a four-hour scale, the oil price witnessed a sell-off after an Inventory Distribution breakdown. The inventory distribution in a minor range of $79.50-82.67 indicates a shift of inventory from institutional investors to retail participants. After an inventory distribution breakdown, the asset is in Wyckoff’s markdown phase post a throwback move to near $80.00.

The 50-period Exponential Moving Average (EMA) at $78.65 has acted as a major barricade for the oil price. The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00 and is indicating more weakness.

After a sheer decline, a pullback move to near the 10-period EMA around $76.65 will be an optimal selling opportunity, which will drag the asset toward February 2 low at $75.15 followed by the horizontal support placed around January 5 low at $73.00.

Alternatively, a rebound move above February 1 high at $79.87 will drive the asset toward January 23 low at $81.19. A breach above the latter will expose the asset for more upside toward January 18 high at $82.67.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 75.83 at the time of writing. Pair opened at 76.0 and is trading with a change of -0.22 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 78.83, 50 SMA 77.71, 100 SMA @ 81.23 and 200 SMA @ 90.92.

The previous day high was 77.4 while the previous day low was 75.16. The daily 38.2% Fib levels comes at 76.02, expected to provide resistance. Similarly, the daily 61.8% fib level is at 76.55, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 74.97, 73.94, 72.72
• Pivot resistance is noted at 77.22, 78.43, 79.46

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