WTI pressured as US dollar perks-up to test critical resistance

Oil pressured to fresh cycle lows in Asia.
Bears targeting lower lows on the daily time frame.

Ross J Burland FXStreet

WTI is moving lower in Asia as the US dollar firms towards a critical resistance level in the DXY in the 93.40s.

At the time of writing, WTI is trading at $64.31 and down some 0.4%.

Overall, the price is in a bullish environment while trading above the 200-day smoothed simple moving average.

Prior analysis

However, it has broken dynamic trendline support and is now trading below the 50-day SSMA.

The downside momentum is strong with daily RSI below 50 following a series of the strongly bearish daily engulfing and outsized candles and lower highs.

63.60 and 61.60 are the downside structural targets while the price is trading below the dynamic counter trendline.

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Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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