What 1-hour chart says?

Aug 2, 2022

Fundamental Development: Oil prices edged lower on Tuesday as investors absorbed a bleak outlook for fuel demand with data pointing to a global manufacturing downturn just as major crude producers meet this week to determine whether to increase supply. Brent crude futures dropped 24 cents, or 0.2%, to $99.82 a barrel, while WTI crude futures eased 10 cents, or 0.1%, to $93.78 a barrel. The slide came after Brent futures slumped on Monday to a session low of $99.09 a barrel, their lowest since July 15. The U.S. crude benchmark dropped to as low as $92.42 a barrel, it is weakest since July 14. The price drops also come as market participants await the outcome of a meeting on Wednesday between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, to decide on September output. Two of eight OPEC+ sources in a Reuter’s survey said that a modest increase for September would discussed at the Aug. 3 meeting. The rest said output is likely to hold steady.

Short Term Technical View: In 1-hour chart, XTIUSD is trading below middle line of Bollinger band indicator. As per RSI Indicator showing weakness in 1-hour chart, XTIUSD pivot level is 94 as per today 1-hour chart, my view is sell on rise strategy is good for XTIUSD. Sell range of XTIUSD is 94 to 94.25 and there is very strong resistance zone at 96.

Alternative Scenario: If XTIUSD will trade above 96 and sustain above in U.S. Session so it will be, give great opportunity to buy with the target of 98 with the stop loss of 95.