FxWirePro-Crude oil Daily Outlook

WTI crude oil showed a minor pullback on the weak US dollar.It hit a high of $74.82 at the time of writing  and is currently trading at $74.14.

According to the Energy Information Administration (EIA), US crude inventories rose by around 1.2 million barrels in the week ended May 31st, compared to a forecast of -2.1 million barrels.

Major factors for crude oil price movement-

US dollar index (Bearish)- Positive  for Crude.

Major resistance - 105/106.50.

Major support- 104/103.

Geopolitical tension-  No further developments in ceasefire talks between Israel and Gaza ( positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $73.61

Kijun-Sen- $75.50

The immediate resistance is around $75. Any jump above the target of $75.57/$75.90/$77.45. On the lower side, near-term support is around $73.60. Any breach below will drag the commodity down to $73/$72/$70.

It is good to sell on rallies  around $75.25-30 with SL around $77 for a TP of $70.