- Oil price is oscillating near its two-week high around $73.90.
- The USD Index has tumbled to near 102.40 as investors are split about Fed’s interest rate outlook.
- An upside break of the triangle chart pattern resulted in wider ticks and heavy volume.
West Texas Intermediate (WTI), futures on NYMEX, is hovering near its two-week high around $73.90 in the early Asian session. The oil price has shown a solid run in the past two trading sessions amid weakness in the US Dollar and expectations of more sanctions on Russia.
The US Dollar Index (DXY) has tumbled to near 102.40 as investors are split about the interest rate outlook of the Federal Reserve (Fed). As per the CME Fedwatch tool, more than 50% of investors are favoring a steady monetary policy by the Fed for its May meeting.
The execution of bases for nuclear weapons in Belarus by Russia has mounted global tensions. The street is discussing that the decision from Russian President Vladimir Putin will attract more sanctions from G7 countries, which might hinder the oil supply further.
On Wednesday, investors’ entire focus will remain on oil inventories data, which will be reported by the United States Energy Information Administration (EIA). As per the consensus, the US EIA will report a small build-up in oil stockpiles by 0.187 million barrels for the week ending March 24.
WTI has witnessed a sharp upside after a breakout of the Symmetrical Triangle chart pattern formed on an hourly scale. An upside break of the triangle chart pattern resulted in wider ticks and heavy volume. The 20-period Exponential Moving Average (EMA) at $73.30 is providing support to the oil bulls.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that upside momentum is already active.
Going forward, a decisive move above the immediate resistance of $74.00 will drive the oil price towards the horizontal resistance plotted from March 03 high at $76.00. A break above the latter would expose the asset to March 02 high at $78.65.
On the flip side, a slippage below March 23 high at $71.39 would drag the asset toward March 17 high at $69.83 followed by March 24 low at $66.88.
WTI hourly chart
-638156433028426976.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.