West Texas Intermediate edges higher as the US Dollar falls to a 2-month low
West Texas Intermediate (WTI) surprisingly holds steady as the US dollar index (US DXY) rapidly lost momentum after the U.S. inflation announcement and displayed a -3% meltdown, posting its worst fall in over ten years.
After two days of declines, (WTI) rebounded after the U.S. inflation data supported bullish investors’ hope that the U.S. Federal Reserve may tap on the hiking brakes, which could support oil demand.
However, China’s battle with increasing COVID-19 infections has continued to rattle the market.
Based on the technical assessment, the Relative Strength Index (RSI) 3-day ‘lookback’ indicator is negative. The Moving Average Convergence Divergence (MACD) supports a weak negative bias. The ADX indicator supports a mild bearish trend.
Although the $83.70-90 challenge was respected on Thursday, we should not abandon this level as we could see another contest soon. Reassess from there.
Daily Chart - West Texas Intermediate (WTI)
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