July 20, 2022 19:54:21
WTI crude oil trades lower despite the weakness in the US dollar. The greenback holds an inverse relationship with the commodities. Further, increased API inventories and a gloomy global economic outlook weighed on the demand scenario.
The US dollar trades below $107.0 as investors continue to assess the outlook of tightening monetary policy from the Federal Reserve. However, the greenback rebounds from the lower levels in the US session.
In addition to that, the API data released on Tuesday showed the expansion of almost 2 million barrels.
Furthermore, global recessionary fear also impacted the prospects of crude oil negatively The demand outlook remains weak amid high inflation and the central bank’s tight monetary policy scenario.
As of writing, WTI/USD is exchanging hands at $99.89, down 0.82% for the day.
WTI consolidates on a 4-hour chart
On the 4-hour chart, the WTI price after testing the lows of $90.53 on July 14 recovered sharply to test the high of $102.39. However, the price entered into a period of short-term consolidation of $98.0-$102.50.
Additionally, the price is well placed above the critical 20-day EMA and 50-day EMA crossover. The formation signals a probable upside breakout. If that happens, the first upside target could be found at $105.00
The RSI (14) trades at 51 with a bullish bias.
On the other hand, a daily close below the $95.0 mark would negate the bullish outlook on the asset. The bears would keep their eyes on $92.50 next.
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