On the daily chart below for XTIUSD, we can see that the price couldn’t break above the top of range at $83. The price is now filling the gap that was created when we got the news on a Sunday that OPEC+ announced a surprise production cut.
The first support will be the red long period moving average, although the sellers may target the bottom of the range at this point. This market keeps being stuck in a range, so the only plays are buying at support and selling at resistance until a major fundamental catalyst leads to a breakout.
XTIUSD technical analysis
On the 4 hour chart below, we can see that the trend now is bearish as the moving averages have crossed to the downside and the price keeps making lower lows and lower highs. The price also broke below a previous swing support, so the bias remains bearish. Today we have the US Jobless Claims and tomorrow the US PMIs. Both the economic reports will be important for the oil price as the market tries to gauge the future demand outlook. If the data points to a recession, oil will fall, on the other hand, if the data remains benign, oil is likely to remain in this range.
On the 1 hour chart below, we can see that the momentum to the downside is waning a bit, so we may get a retracement back to the broken support now turned resistance at $80 where the price will also find the upper bound of the regression channel and the 4 hour red long period moving average for extra resistance. The sellers are likely to lean on that zone, while the buyers will look to pile in if the price breaks above the $80 level.
