The upside in the oil price looks restricted amid a recovery in the US Dollar. (Pivot Orderbook analysis)

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• The upside in the oil price looks restricted amid a recovery in the US Dollar.
• An absence of follow-up selling after a loss in the upside momentum indicates that oil is preparing for a recovery
• Advancing 50-period EMA at $82.00 is providing a cushion to the oil bulls.

The pair currently trades last at 82.44.

The previous day high was 82.99 while the previous day low was 81.65. The daily 38.2% Fib levels comes at 82.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.16, expected to provide support.

West Texas Intermediate (WTI), futures on NYMEX, defended the critical support of $82.00 on Friday. The oil price has rebounded from $82.00, however, the absence of strength in recovery has pushed the black gold inside the woods. The black gold is struggling to gather strength as investors are divided that they should remain cautionary on deepening expectations of more rate hikes from the Federal Reserve (Fed) or cheer the fact that the Fed would reach to terminal rate, as widely expected.

The sideways performance in the oil price is also the outcome of recovery in the US Dollar Index (DXY). The USD Index has recovered to near 101.75 after printing an annual low of 100.78, which has restricted the upside for the oil price.

The oil price has shifted its auction into the $81.80-83.40 range from the prior auction of $79.00-81.80, which indicates that the upside bias is still solid. Also, advancing 50-period Exponential Moving Average (EMA) at $82.00 is providing a cushion to the oil bulls.

On a two-hour scale, exhaustion in the upside momentum can be recognized as the Relative Strength Index (RSI) (14) has formed a lower high while the asset is still making higher highs. An absence of follow-up selling after a loss in the upside momentum indicates that the asset is preparing for a recovery.

For a fresh buy, a move above April 13 high at $83.00 will press a buying opportunity. This would drive the asset towards November 16 high at $87.47 followed by the round-level resistance at $90.00.

On the flip side, a downside move below April 03 low would force oil to fill the gap inspired by the surprise announcement of production cuts by OPEC+. This will drag the asset towards March 31 high at $75.78 and March 28 low at $72.26.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 82.44 at the time of writing. Pair opened at 82.6 and is trading with a change of -0.19 % .

The pair is trading above its 20 Daily moving average @ 75.69, above its 50 Daily moving average @ 76.14 , above its 100 Daily moving average @ 76.92 and below its 200 Daily moving average @ 82.59

The previous day high was 82.99 while the previous day low was 81.65. The daily 38.2% Fib levels comes at 82.48, expected to provide resistance. Similarly, the daily 61.8% fib level is at 82.16, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 81.83, 81.07, 80.49
• Pivot resistance is noted at 83.18, 83.76, 84.52

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