The oil price is struggling to defend the immediate support of $77.00 as fears of a global slowdown have deepened. (Pivot Orderbook analysis)

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• The oil price is struggling to defend the immediate support of $77.00 as fears of a global slowdown have deepened.
• Global central banks are preparing for a fresh rate hike cycle to arrest stubborn inflation.
• Investors have ignored upbeat Chinese prospects and are worried due to global recession fears.

The pair currently trades last at 77.23.

The previous day high was 79.01 while the previous day low was 76.94. The daily 38.2% Fib levels comes at 77.73, expected to provide resistance. Similarly, the daily 61.8% fib level is at 78.22, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, have gauged an intermediate cushion around $77.00 in the Tokyo session. The oil prices have taken a sigh of relief after a four-day bearish spell maid uncertainty over further squeeze in monetary policy by global central banks.

The black gold has surrendered the majority of gains generated after OPEC+ announced surprise production cuts. And, a further decline in the oil price will expose it to the crucial support of $75.60. Deepening fears slowdown in the global economy knowing that central banks are preparing for a fresh rate hike cycle to arrest stubborn inflation will put a big dent in the overall oil demand.

Along with the Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE) are expected to hike rates further to bring down persistent inflation in their respective economies. The Fed and BoE are highly expected to raise rates further by 25 basis points (bps) while investors are divided about the pace of rate hikes by the ECB as options of 25 and 50 bps are available.

No one could deny the fact that a more conservative approach to monetary policies by global central banks would renew fears of global recession as manufacturing activities will be beaten down significantly.

Apart from that, investors have ignored upbeat Gross Domestic Product (GDP) numbers from China, which have strengthened signs of economic recovery and eventually the oil demand in the second-largest nation. It is worth noting that China is the largest importer of oil in the world and economic recovery in China would support oil prices.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 77.23 at the time of writing. Pair opened at 77.11 and is trading with a change of 0.16 % .

The pair is trading below its 20 Daily moving average @ 77.9, above its 50 Daily moving average @ 76.41 , above its 100 Daily moving average @ 76.98 and below its 200 Daily moving average @ 82.23

The previous day high was 79.01 while the previous day low was 76.94. The daily 38.2% Fib levels comes at 77.73, expected to provide resistance. Similarly, the daily 61.8% fib level is at 78.22, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 76.36, 75.61, 74.28
• Pivot resistance is noted at 78.44, 79.76, 80.51

[/s2If]
Join Our Telegram Group