Oil price dips on renewed fears about Chinese demand. (Pivot Orderbook analysis)

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• Oil price dips on renewed fears about Chinese demand.
• The US dollar’s reversal has failed to support crude prices.
• WTI falls beyond 2% on the day to hit session lows near $90.00.

The pair currently trades last at 88.64.

The previous day high was 92.92 while the previous day low was 89.67. The daily 38.2% Fib levels comes at 90.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 91.68, expected to provide resistance.

WTI prices have extended losses for the second consecutive day on Tuesday, as hopes about a relaxation of the COVID-19 restrictions in China faded, and the investors brace for the outcome of the US mid-term elections.

Hopes that China was contemplating a relaxation on the coronavirus restrictions waned on Tuesday. The Chinese authorities confirmed their commitment to strict COVID-19 controls, which has reactivated fears of negative consequences in oil demand, as the infections increase as the winter flu season approaches.

Furthermore, the uncertainty about the outcome of the US mid-term elections has increased negative pressure on oil prices. Investors have adopted a wait-and-see stance, while the first polls point out to a Republican victory.

The dollar reversal witnessed during the North American trading session has failed to offer any relevant aid to oil futures. Crude prices have dropped more than 2% on the day, extending their reversal from Monday’s highs at 93.65 to session lows right above $90.00.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 88.64 at the time of writing. Pair opened at 91.28 and is trading with a change of -2.89 % .

The pair is trading above its 20 Daily moving average @ 86.71, above its 50 Daily moving average @ 85.67 , below its 100 Daily moving average @ 91.09 and below its 200 Daily moving average @ 97.46

The previous day high was 92.92 while the previous day low was 89.67. The daily 38.2% Fib levels comes at 90.92, expected to provide resistance. Similarly, the daily 61.8% fib level is at 91.68, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 89.66, 88.04, 86.41
• Pivot resistance is noted at 92.91, 94.54, 96.16

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