Oil remains firmly in red on demand fears, strong dollar
WTI oil started the week in negative mode, falling 1.7% during Asian and early European trading on Monday.
Crude oil is pressured by fears of recession that would significantly slow global economy and lower demand for energies, while strong dollar on prospects of further aggressive steps of the Fed towards its monetary policy, adds to negative sentiment
The contract remains in red following three consecutive weeks of losses, as well as falling for the fourth straight month.
Fresh weakness probes again through pivotal Fibo support at $83.13 (38.2% of $6.52/$130.48, Apr 2020/Mar 2022 rally), with firm break here to generate bearish signal for retest of key near-term support at $81.17 (nine-month low, posted on Sep 8).
Bearish technical studies on daily and weekly chart support the action, with upticks expected to provide better selling opportunities.
Upticks will face solid resistance from daily Tenkan-sen ($85.50) which should ideally cap.
Only break above $90 zone (daily Kijun-sen / Sep 14 lower top / psychological) would sideline bears.
Res: 85.50; 86.16; 88.68; 89.40
Sup: 82.73; 81.17; 80.00; 78.48