Fundamental Development After hitting seven-week highs, oil prices slumped 2% on Tuesday as Reuters reported that the United States could ease some restrictions on Venezuela's government, raising hopes that the market could see some additional supplies. Prices also fell after Federal Reserve Chairman Jerome Powell warned the economy could hurt by attempts to reduce inflation. Brent crude fell $2.31, or 2%, to settle at $111.93 a barrel, and U.S. West Texas Intermediate (WTI) crude fell $1.8, or 1.6%, to settle at $112.40 a barrel. Powell suggested there could be some economic pain involved in bringing inflation down. The U.S. central bank will "keep pushing" to tighten U.S. monetary policy until it is clear that inflation is declining, he said. Oil prices have generally been rising as Russian supply squeezed by bans from several countries and an economic downturn due to broad sanctions on Moscow imposed by the United States and allies.
Short Term Technical View: In 1-hour chart, XTIUSD is trading middle line of Bollinger band indicator. CCI indicator also showing weakness at upper line level, and XTIUSD is trading today near pivot level 108. As per the 1-hour chart, XTI will be test next support level 106. As per my view, sell on rise is good strategy for XTIUSD, sell range is 108 to 109, and there is very strong resistance zone at 110.
Alternative Scenario: If XTIUSD will trade above 110 and sustain in U.S. Session so it will be, give great opportunity to buy with the target of 111.50 with the stop loss of 109.
Short Term Technical View: In 1-hour chart, XTIUSD is trading middle line of Bollinger band indicator. CCI indicator also showing weakness at upper line level, and XTIUSD is trading today near pivot level 108. As per the 1-hour chart, XTI will be test next support level 106. As per my view, sell on rise is good strategy for XTIUSD, sell range is 108 to 109, and there is very strong resistance zone at 110.
Alternative Scenario: If XTIUSD will trade above 110 and sustain in U.S. Session so it will be, give great opportunity to buy with the target of 111.50 with the stop loss of 109.