Fundamental Development: Oil was up on Tuesday morning in Asia over expectations of demand recovery in China and doubts about higher output targets from the Organization of the Petroleum Exporting Countries and allies (OPEC+). Brent oil futures rose 0.62% to $120.25. WTI futures jumped 0.71% to $119.34; the benchmark hit a three-month high of $120.99 on Monday. Easing travel restrictions in China are likely to boost oil demand in the coming weeks, ANZ Research analysts said in a note. Beijing and the commercial hub Shanghai are easing COVID -19 curbs and allowing more mobility. Beijing has reopened restaurants and cinemas in most parts. OPEC+ decided last week to increase output for July and August by 648,000 barrels per day, or 50% more than previously planned. However, not all members could ramp up output, including Russia, which faces Western sanctions.
Short Term Technical View: In 1-hour chart, XTIUSD is trading below middle line of Bollinger band indicator. RSI indicator is showing weakness in 1-hour chart of XTIUSD. As per the 1-hour chart, XTIUSD is trading below today pivot level 117.53. As per my view, sell on rise is good strategy for XTIUSD, sell range is 117.50 to 117.75, and there is very strong resistance zone at 118.75.
Alternative Scenario: If XTIUSD will trade above 118.75 and sustain above in U.S. Session so it will be, give great opportunity to buy with the target of 121 with the stop loss of 116.
Short Term Technical View: In 1-hour chart, XTIUSD is trading below middle line of Bollinger band indicator. RSI indicator is showing weakness in 1-hour chart of XTIUSD. As per the 1-hour chart, XTIUSD is trading below today pivot level 117.53. As per my view, sell on rise is good strategy for XTIUSD, sell range is 117.50 to 117.75, and there is very strong resistance zone at 118.75.
Alternative Scenario: If XTIUSD will trade above 118.75 and sustain above in U.S. Session so it will be, give great opportunity to buy with the target of 121 with the stop loss of 116.