WTI crude oil takes offers to extend the previous day’s losses to $76.00, refreshing the intraday low amid early Wednesday in Europe. In doing so, the black gold breaks a two-week-long ascending trend line, currently around $76.10.

On Wednesday, the release of the Federal Open Market Committee (FOMC) minutes will determine what authorities are planning for the terminal rate and targets decided for inflation for the current year and a roadmap for achieving the 2% inflation target.

The US Dollar Index (DXY) is gathering strength to deliver a break above the immediate resistance of 103.90 amid the risk aversion theme.

The commodity’s latest weakness could be linked to its early-week retreat from the 100-bar Simple Moving Average (SMA). Adding strength to the Oil’s pullback moves could be the bearish MACD signals.

That said, WTI bears are well-set to poke the $75.00 round figure before approaching the monthly low surrounding $72.50.

It should be noted, however, that the Oil’s weakness past $72.50 could make it vulnerable to plunge toward the previous monthly low, also the lowest level since December 2021, near $70.30.

In a case where the energy benchmark remains bearish past $70.30, the $70.00 round figure appears crucial for the Oil bears to watch as it holds the key to further downside targeting the late 2021 swing low around $66.10.

Meanwhile, recovery moves need validation from the 100-bar SMA, close to $77.50 by the press time.

Even so, a convergence of the 61.8% Fibonacci retracement level of the commodity’s late January to early February fall and a downward-sloping resistance line from January 27, around $78.80-90, appears a tough nut to crack for the bulls.

Also acting as an upside filter is the $79.00 and multiple stops around the $80.00 psychological magnet.

The orderblock can act as a strong support to WTI

Feb 22 2023