Oil Pares Losses After Steep Correction Amidst Unhappy OPEC+ Oil Technical Analysis: OPEC+ is not the Fed or ECB

Oil prices are in repair mode on Thursday after a near 10% decline in just five trading days. The sharp downside move came after the OPEC+ meeting did not hold any measure to further support prices at or around $80.00. With markets disappointed, several central banks added fuel to the fire by suggesting that an aggressive cutting cycle might not take place as disinflation is going too slow. The sell-off in the past days has prompted a response from OPEC+, which said that the organization is ready to do more to support prices when needed. Meanwhile, the US Dollar Index (DXY) is hovering just above 104.00 after Monday’s downbeat economic data pushed the Greenback to the lower end of the 104.00-105.00 range. With the European Central Bank (ECB) interest-rate decision on the docket for this Thursday and the US Employment Report on Friday, the DXY might be trading in a new range by the closing bell at the end of the week. At the time of writing, Crude Oil (WTI) trades at $74.23 and Brent Crude at $78.60 Oil news and market movers: OPEC+ lashes out

Oil Technical Analysis: OPEC+ is not the Fed or ECBOil prices are still depressed following their near 10% slide lower. The decline is driven by the fact thatOPEC+ is unable and reluctant to take more measures to limit production. It looks increasingly clear that Oil demand will largely depend on what big central banks do as an interest-rate cut cycle wouldspark an economic rally, which will support Oil demand. Looking up, the pivotal level near $75.27 needs to be recovered first before aiming for the key Simple 100-day and 200-day Simple Moving Averages (SMA) at $79.09 and $79.42, respectively. Next, the 55-day Simple Moving Average (SMA) at $81.13 and the descending trendline at $81.45 are an area with a lot of resistance where any recovery rally could pause. Once broken through there, the road looks quite open to head to $87.12. The $76.00 marker is now a resistance with the $75.27 level playing a crucial role if traders still want to have an option to head back to $80.00. Risks are skewed towards another leg lower, all the way down to $68.00, below $70.00. More By This Author:US Dollar Reemerges After Downbeat Start Of The Week Oil Trades Near Last Line Of Support Before Substantial Correction US Dollar trades flat with TIPP economic optimism retreating