WTI clings to $80.00 amid broad US dollar strength across the board
|- WTI keeps trading above $80.00 as other energy resources advance.
- The market sentiment is downbeat on the back of higher energy prices, threatening to derail economic growth.
- WTI: The 1-hour chart depicts a possible consolidation before resuming the upward trend from a technical perspective.
Western Texas Intermediate (WTI) is advancing for the fourth consecutive day, is trading at $80.10, climbs 0.14% during the New York session at the time of writing. Market sentiment is a mixed bag, as US stocks seesaw around the green and red, while European stocks are recording losses between 0.07% and 0.44%, except for the Spanish IBEX 35, which increased 0.43%.
The ongoing energy crisis threatens to keep oil prices higher. Shortages of energy in Asia have pushed China to allow coal-fired power plants to pass on the high costs of generation to some end users. Further, India has asked energy producers to import up to 10% of their coal needs, despite being the world’s second-largest coal producer. However, a steep surge in power demand that has exceeded pre-pandemic levels in Asia means that coal India’s supplies are no longer sufficient.
Meanwhile, the US Dollar Index that tracks the greenback’s performance against a basket of six peers and influences commodity prices is up 0.09%, sitting at 94.45 near one and half year highs, putting a lid on WTI price.
WTI Price Forecast: Technical outlook
1-hour chart
WTI is hovering around the 50-simple moving average (SMA) at 80.02. A breach above $81.00 could pave the way for further gains. The first supply zone would be $82.00, a level tested on Monday unsuccessfully, with the move retreating to $79.00. A break above the latter would expose a move towards $84.00.
On the flip side, a break below the 50-SMA could exert downward pressure on WTI, pushing the price towards the 100-SMA at $78.84. In that outcome, the following demand zones would be the $78.00 and then the 200-SMA at $77.70.
The Relative Strenght Index (RSI) is at 49, suggesting that WTI could be headed towards consolidation or a correction lower before resuming the upward trend.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.