FxWirePro- Crude Oil Daily Outlook

Crude oil-  

WTI crude oil holds above $85 on geopolitical tensions in the Middle East. It hit a high of $85.42 at the time of writing and is currently trading at $85.35.

According to API,  US crude oil inventories declined by 2.3 billion barrels for the week ended Mar 29, compared to a forecast of -2 million barrels.

 Major factors for crude oil price movement-

US dollar index (Bullish)- negative for Crude. Major resistance - 104.50/105. Major support- 103.40/102.70.

Geopolitical tension-  Escalation of tension between Israel and Hamas (positive for crude)

 Ichimoku analysis (4- hour chart)

Tenken-Sen- $84.71

Kijun-Sen- $83.04

The immediate resistance is around $85.50. Any jump above targets $87/88.25. On the lower side, near-term support is around $84.25. Any breach below will drag the commodity down to $83.45/$83.

It is good to buy on dips around $84.20-25 with SL around $83 for a TP  of $88.