Oil price has turned sideways after defending three-week support of $76.70 ahead of UK EIA inventory data. (Pivot Orderbook analysis)

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• Oil price has turned sideways after defending three-week support of $76.70 ahead of UK EIA inventory data.
• Anticipation of more interest rate hikes from Western central banks
• is weighing heavily on oil prices.
• The USD Index has extended its correction to near 101.81 after a stellar upside move.

The pair currently trades last at 77.23.

The previous day high was 79.02 while the previous day low was 76.47. The daily 38.2% Fib levels comes at 77.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 78.04, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, have managed to find an intermediate cushion near three-week support of $76.70. The oil price is showing a sideways performance after defending the three-week low as investors are awaiting the release of the oil inventory data by the United States Energy Information Administration (EIA) for further guidance.

The US Dollar Index (DXY) has extended its correction to near 101.81 after a stellar upside move. A resumption for the upside move in the USD Index could impact the oil price further.

Meanwhile, the anticipation of more interest rate hikes from the Federal Reserve (Fed), the Bank of England (BoE), and the European Central Bank (ECB) to arrest stubborn inflation in their respective economies is weighing heavily on oil prices. Further interest rate hikes from Western central banks will trigger fears of economic slowdown and will eventually impact the oil demand.

The oil price witnessed a steep fall after dropping below the crucial support placed from April 03 low at $79.00, which is now acting as a barricade for bulls. The downside move in the black gold is expected to surrender entire gains generated after the surprise announcement of production cuts by OPEC+.

The 20-period Exponential Moving Average (EMA) at $77.75 is acting as a hurdle for the oil bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has fallen back inside the bearish range of 20.00-40.00, advocating further weakness.

Going forward, a decisive downside below $75.00 will expose the oil price to March 30 low at $72.69 followed by the round-level support at $70.00.

On the flip side, a confident break above April 03 low at $79.00 will drive the oil price toward April 04 high at $81.80 and April 12 high at $83.40.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 77.23 at the time of writing. Pair opened at 77.07 and is trading with a change of 0.21 % .

The pair is trading below its 20 Daily moving average @ 79.0, above its 50 Daily moving average @ 76.34 , above its 100 Daily moving average @ 76.93 and below its 200 Daily moving average @ 81.96

The previous day high was 79.02 while the previous day low was 76.47. The daily 38.2% Fib levels comes at 77.44, expected to provide resistance. Similarly, the daily 61.8% fib level is at 78.04, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 76.02, 74.97, 73.47
• Pivot resistance is noted at 78.57, 80.07, 81.12

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