WTI Oil: Can the Bounce Hold Amid US Inflation Data?

In today’s technical analysis, let’s focus on WTI Oil, which yesterday encountered a crucial support level and responded with a significant bounce. This could present a promising buying opportunity, though it’s not guaranteed. The key supports that have come into play are, first, the green downtrend line, which was broken last week and now defended as support, and second, the horizontal support at around $71.7, marked in black. So far, the bounce from these supports has been quite robust, suggesting a potential positive shift in sentiment for the midterm.

However, today’s inflation data from the US will likely influence the dollar, which in turn will affect oil prices. Should the dollar weaken following the inflation report, this technical bounce could gain momentum. On the other hand, a stronger dollar may hinder the ongoing recovery in oil prices and challenge this promising technical setup. As always, we’ll need to observe how the market reacts to the inflation number and how it impacts oil in the aftermath.

Source: https://www.axiory.com/analytics/technical-analysis/wti-oil-can-the-bounce-hold-amid-us-inflation-data