WTI price is heading lower despite the softer US Dollar. (Pivot Orderbook analysis)

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• WTI price is heading lower despite the softer US Dollar.
• Global growth concerns start to pick up on the back of the SVB fallout.
• An inflationary outlook will be key to watching for WTI price directions.

The pair currently trades last at 74.59.

The previous day high was 77.55 while the previous day low was 72.43. The daily 38.2% Fib levels comes at 74.38, expected to provide support. Similarly, the daily 61.8% fib level is at 75.59, expected to provide resistance.

West Texas Intermediate (WTI) price is trading flat on Tuesday amid a softer US Dollar and muted risk sentiment. Touching briefly on Monday’s price action, WTI has fallen to the low of $72.31 level on the back of a strong risk-off environment ignited by Silicon Valley Bank (SVB) and Signature Banks’ fallout. Since then, the WTI price has rebounded sharply in the wake of the Federal Reserve’s backstop plan. After hitting the high around the $76 mark on Monday, the WTI price again drifted lower, since the US Dollar dynamics took a shift.

Higher borrowing cost across the globe is denting the financial system and raising growth concerns. WTI price is in the corrective decline since the China reopening story is not looking optimistic, as the populous country lowered its growth forecast to 5.0%.

The SVB fallout is adding to the global growth concern, as it is perceived as an indication of the first dent among many in the financial system. Businesses are struggling with their repayments amid rising borrowing costs and eventually, it will result in a slowing demand.

Despite tighter production and many voluntary cuts from the Organization of the Petroleum Exporting Countries (OPEC), the WTI price is struggling to surpass the $80 mark.

Oil prices are impacted by a combination of factors like the US Dollar, inflation, OPEC, and global growth concerns. Adding all of the aforementioned factors, it is hard to justify the directional character of oil prices but seems that the oil market is taking its cue from growth concerns mainly.

It will also be important to watch the OPEC stance on lower oil prices since these countries are facing a struggle to keep oil above the oil prices to desired $80 mark.

Technical Levels: Supports and Resistances

XTIUSD currently trading at 74.59 at the time of writing. Pair opened at 74.78 and is trading with a change of -0.25 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 77.15, 50 SMA 77.71, 100 SMA @ 79.33 and 200 SMA @ 86.59.

The previous day high was 77.55 while the previous day low was 72.43. The daily 38.2% Fib levels comes at 74.38, expected to provide support. Similarly, the daily 61.8% fib level is at 75.59, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 72.29, 69.8, 67.17
• Pivot resistance is noted at 77.41, 80.04, 82.53

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