WTI Price Forecast: Eyes $93.00 as bulls retain control above 200-SMA support on H4
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts fresh buyers following the previous day's good two-way price swings and climbs to the $93.00 neighborhood during the Asian session on Tuesday. The commodity, however, remains confined within a multi-day-old range as traders await further developments surrounding the Middle East crisis amid mixed signals.
US President Donald Trump rejected a peace proposal from Iran to resolve their military conflict and reopen the Strait of Hormuz immediately on meeting their terms. Furthermore, Trump denied a report by the news outlet Axios that he offered Iran sanctions relief and the release of frozen funds in return for concrete Iranian steps regarding the nuclear program. This keeps the geopolitical risk premium in place and continues to act as a tailwind for crude oil prices.
Trump, however, confirmed that American and Iranian negotiators exchanged messages on Monday and expected talks to resume this week. Furthermore, Saudi Arabia had resumed exporting oil via its East-West Pipeline after repairing damage caused by Houthi drone strikes, easing supply concerns. Apart from this, the prevailing bullish sentiment surrounding the US Dollar (USD) might cap USD-denominated commodities, including crude oil prices.
From a technical perspective, the near-term bias is bullish as the black liquid holds above the 200-period Simple Moving Average (SMA) on the 4-hour chart and has reclaimed the 38.2% Fibonacci retracement. Moreover, momentum indicators align with this constructive tone. The Relative Strength Index (14) is hovering just above 50, and the Moving Average Convergence Divergence (MACD) is showing a modest positive reading, hinting at steady upward pressure.
Meanwhile, immediate resistance emerges at the 23.6% Fibo. retracement near $95.31, ahead of the cycle high anchor around $102.04, where a break would open the way for a more extended bullish leg. On the downside, initial support is located at the 38.2% retracement at $91.15, ahead of the 200-period SMA on the 4-hour chart at $89.69 and the denser Fibonacci floor around the 50.0% retracement at $87.79.
WTI 4-hour chart
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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