Crude Oil Drops as Hawkish Fed and ECB Erode Growth Prospects. Where to for WTI?

[MongiIG]

CRUDE OIL, PRICE CAP, US DOLLAR, FED,ECB, BUNDESBANK, NAGEL, EUR/JPY - TALKING POINTS

• Crude oil prices slipped as headwinds build for global growth
• EUR/JPY rallied on a hawkish ECB joining the Fed stance for large lifts
• All eyes are on US CPI on Tuesday. Will it help or hinder WTI?

 

WTI CRUDE OIL TECHNICAL ANALYSIS

Oil is trading at levels seen before the Russian invasion of Ukraine. Last week it touched a prior low at 81.90 but it was unable to follow through. This may continue to provide support.

That move saw the price move under the lower 21-day simple moving average (SMA) based Bollinger Band. and then close back inside it. This could indicate a reversal may unfold or that bearish momentum might pause.

Resistance might be at a recent peak of 90.39

Chart created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com