Oil prices oscillate around $84.00 as the focus shifts to the Fed monetary policy meeting. (Pivot Orderbook analysis)

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• Oil prices oscillate around $84.00 as the focus shifts to the Fed monetary policy meeting.
• Rate hikes by G-7 central banks will cut the growth forecasts.
• OPEC+ production targets have been trimmed by 3.58 million barrels per day.

The pair currently trades last at 84.06.

The previous day high was 86.03 while the previous day low was 82.93. The daily 38.2% Fib levels comes at 84.12, expected to provide resistance. Similarly, the daily 61.8% fib level is at 84.85, expected to provide resistance.

West Texas Intermediate (WTI), futures on NYMEX, are displaying a lackluster performance in the early European session. The oil prices are witnessing back-and-forth moves in a narrow range of $82.90-83.40 as investors are looking to create positions after the announcement of the interest rate decision by the Federal Reserve (Fed). The positions on oil prices would be more decisive post the Fed monetary policy meeting.

The black gold is facing severe pressure this week as central banks from the G-7 group are preparing for a fresh rate hike cycle. The central banks are forced to tighten their policies further as price pressures have not responded well to the pace adopted by them. No doubt, the rate hike announcements will also stem a gloomy outlook for the growth rate. The concept of squeezing liquidity from the market has forced the corporate to postpone their expansion plans and invest majorly in ultra-filtered investment opportunities only.

The mighty US dollar index (DXY) is aiming higher as the Fed will step up its interest rates at least by 75 basis points (bps). This will bring a sheer decline in liquidity as private players will dodge fetching money at 3-3.25% interest rates. It will trim the prospects for growth rates and eventually a decline in the oil demand vigorously.

Meanwhile, a decline in oil supplies by OPEC+ seems unable to provide a cushion on the downside. The OPEC+ production targets are shortened by 3.58 million barrels per day, which carries 3.5% of global demand. However, investors are focusing entirely on demand catalysts.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 84.06 at the time of writing. Pair opened at 84.18 and is trading with a change of -0.14 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 87.93, 50 SMA 90.92, 100 SMA @ 100.06 and 200 SMA @ 96.29.

The previous day high was 86.03 while the previous day low was 82.93. The daily 38.2% Fib levels comes at 84.12, expected to provide resistance. Similarly, the daily 61.8% fib level is at 84.85, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 82.74, 81.29, 79.64
• Pivot resistance is noted at 85.83, 87.48, 88.92

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