Oil prices retreat from the $90.00 area to levels near $88.00. (Pivot Orderbook analysis)

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• Oil prices retreat from the $90.00 area to levels near $88.00.
• A strong US dollar, following Fed’s decision is weighing on crude prices.
• WTI faces a key resistance area at $90.00.

The pair currently trades last at 87.55.

The previous day high was 89.69 while the previous day low was 87.14. The daily 38.2% Fib levels comes at 88.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 88.11, expected to provide resistance.

WTI Oil might have peaked right above $90 this week, as crude prices pulled back on Thursday, to pare gains after a two-day recovery. The West Texas Intermediate has depreciated about 2% so far today, weighed by the US dollar’s strength.

A soaring greenback has been pushing crude prices lower after Wednesday’s US Federal Reserve monetary policy decision. The bank hiked rates by 0.75% as expected and confirmed its commitment to continue tightening borrowing costs.

Fed president, Jerome Powell surprised the market with a hawkish rhetoric at the press conference, where he refused the idea that the bank might have overtightened and suggested that interest rates may peak at levels above the market expectations. These remarks curbed investors’ expectations of a dovish pivot in December and sent the US dollar surging across the board.

US macroeconomic data, however, have not been particularly dollar-supportive on Thursday, especially the ISM services PMI, which has shown a weaker-than-expected increase on the sector’s activity in October, triggering a moderate pullback on the USD.

From a wider perspective, the WTI remains in its positive trend from late September lows, yet capped by the trendline resistance from early July highs, now at $90.00, which should give way to expose the 100-day SMA, at $91.50 before the October 10 high at 92.55.

On the downside, below session lows at $87.00, a successful move beyond the 50-day SMA and trendline support near $85.50 would negate the near-term bullish trend exposing the October 31 low at $84.70.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 87.55 at the time of writing. Pair opened at 88.73 and is trading with a change of -1.33 % .

The pair is trading above its 20 Daily moving average @ 86.71, above its 50 Daily moving average @ 85.9 , below its 100 Daily moving average @ 91.7 and below its 200 Daily moving average @ 97.41

The previous day high was 89.69 while the previous day low was 87.14. The daily 38.2% Fib levels comes at 88.71, expected to provide resistance. Similarly, the daily 61.8% fib level is at 88.11, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 87.35, 85.97, 84.8
• Pivot resistance is noted at 89.9, 91.06, 92.44

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