West Texas Intermediate (WTI) edges high, but will $84.20-40 hold?
West Texas Intermediate (WTI) oil prices rose slightly in early Friday trade and potentially set for a positive weekly close amid bets on tighter supplies and persistent geopolitical unrest in the Middle East.
However, recent gains were tepid as traders sat on the edge ahead of key U.S. inflation data due later in the day, which is set to offer more cues on the path of interest rates as the stage is set for the upcoming U.S. (PCE) price index reading, which is the U.S. Federal Reserve’s preferred inflation gauge.
Meanwhile, the latest data indicates a slower expansion in the U.S. economy in the first quarter, accompanied by higher core inflation at 3.7%.
This could delay anticipated interest rate cuts by the Federal Reserve.
U.S. GDP grew by 1.6%, missing expectations and signalling a potential economic slowdown.
As Fed policymakers enter a blackout period, markets await insights into their approach to inflation and monetary policy at their May 1 meeting.
Based on technical indicators, the Relative Strength Index (RSI) 3-day 'lookback' indicator rebound holds a positive bias, while the MACD remains negative and the ADX indicates a ranging market.
Persistent high volatility suggests traders should review their positions due to whipsaw movements.
Key support is identified at $79.80-90, with re-evaluation recommended at that level.
On the upside, interim resistance is at $84.20-40, warranting further assessment, as this level may find a bearish ambush.
Daily Chart West Texas Intermediate (WTI)
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