WTI remains on the front foot around intraday high. (Pivot Orderbook analysis)

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• WTI remains on the front foot around intraday high.
• China reopening, PBOC’s Shuqing propel expectations of higher energy demand.
• US data trigger economic slowdown fears, weigh on the US Dollar.
• US, China inflation will be crucial for clear directions.

The pair currently trades last at 74.45.

The previous day high was 75.66 while the previous day low was 73.44. The daily 38.2% Fib levels comes at 74.29, expected to provide support. Similarly, the daily 61.8% fib level is at 74.81, expected to provide resistance.

WTI grinds higher near the intraday top surrounding $74.70 as firmer sentiment jostles with economic slowdown concerns during early Monday. Even so, the softer US Dollar and a light calendar allow the black gold buyers to keep the reins, after Friday’s mixed performance.

That said, the risk profile remains firmer amid China’s reopening of the national borders after a three-year halt. On the same line were comments from Guo Shuqing, party secretary of the People’s Bank of China (PBOC).

“Some 2 billion trips are expected this season, nearly double last year’s movement and recovering to 70% of 2019 levels, the government says” reported Reuters while conveying China unlock news.

On the other hand, PBOC’s Shuqing said, “The world’s second-largest economy is expected to quickly rebound because of the country’s optimized Covid-19 response and after its economic policies continue to take effect.”

Elsewhere, the US Dollar Index (DXY) dropped the most in three weeks the previous day, down 0.20% intraday near 103.70 by the press time, as the US employment report failed to impress the greenback buyers while the US activity numbers raised fears of economic slowdown. It’s worth noting that downbeat prints of the US wage growth, ISM Services PMI and the Factory Orders drowned the Treasury bond yields, as well as the DXY the previous day.

On a different page, headlines surrounding a delay in the colonial pipeline restoration and the Russia-Ukraine tussles seem to also help the energy buyers. However, the economic fears test the upside momentum as traders fear more rate hikes ahead of the Consumer Price Index (CPI) for December from China and the US, up for publishing on Wednesday and Thursday respectively.

WTI rebound remains elusive unless the quote crosses the 21-DMA hurdle surrounding $77.00.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 74.45 at the time of writing. Pair opened at 73.87 and is trading with a change of 0.79% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 77.06, 50 SMA 79.94, 100 SMA @ 83.09 and 200 SMA @ 93.01.

The previous day high was 75.66 while the previous day low was 73.44. The daily 38.2% Fib levels comes at 74.29, expected to provide support. Similarly, the daily 61.8% fib level is at 74.81, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 72.99, 72.1, 70.77
• Pivot resistance is noted at 75.21, 76.54, 77.42

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