WTI crude oil has been climbing steadily after bouncing from its $60.50 lows, but now appears to be approaching a major test at the $64.00 psychological resistance.
Will the range resistance hold, or can oil break higher on supply concerns and risk-on sentiment?
WTI Crude Oil 4-hour Forex Chart by TradingView
Crude oil prices popped higher as a U.S. trade court blocked President Trump’s global tariffs, easing trade tensions and boosting risk appetite. Supply worries also resurfaced after OPEC+ kept production steady and the U.S. barred Chevron from exporting Venezuelan crude.
But the rally may soon hit a resistance. The Trump administration appealed the court ruling, keeping trade policy uncertainty alive. OPEC+ is also expected to announce a production hike of 411K barrels/day this weekend, adding pressure to already elevated supply.
On top of that, the latest FOMC minutes showed recession risks creeping into the Fed’s baseline outlook. And with the U.S. pushing for more trade deals, traders may feel more at ease holding USD assets while the global growth outlook remains shaky.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on WTI crude oil and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
WTI crude oil, which recently bounced from the $60.50 mid-range support, looks on track to test the $64.00 psychological handle that capped gains back in April and May.
This time around, that level lines up with the R1 ($63.87) Pivot Point, adding weight to it as a key resistance zone.
Bulls riding the current momentum may target this area for potential profit-taking. But if you’re the cautious type, it might be smarter to wait for confirmation.
A solid break above $64.00 could open the door for a run toward $68.50 or even $70.00 previous areas of interest.
On the other hand, red candlesticks and a bearish bounce from the level may drag USOIL back to its $60.50 mid-range levels, if not the $57.00 range support zone.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
