FX.co ★ CL/Crude Oil

West Texas Intermediate (WTI), the US benchmark Crude Oil, sees some selling pressure after a bounce off the $79.30-$79.25 level area, about a two-week low. But the fall is well-supported. WTI is trading slightly above the $81.00 level area in the early hours of the European session today, Thursday. Hopes of a peace deal between the US and Iran and the reopening of the Strait of Hormuz are the main drivers of downward pressure on crude oil prices. But on Tuesday, the Deputy Foreign Minister of Iran, Kazem Gharibabadi, said that the strategic waterway would not be completely opened until the US fulfills its obligations according to the interim peace deal that was signed in June. In addition, the overnight rally found it difficult to gain acceptance above the $82.10-$82.15 resistance area, which consists of the 100-period EMA on the 4-hour chart and the 38.2% Fibonacci retracement level of the move up from the monthly lows. Furthermore, the MACD is still slightly negative, with the line below its signal line, both below the zero mark, and the RSI close to 40. In addition, the entire technical formation implies that the rallies may remain constrained below the clustered resistance zones above, even though there was an upside rebound from the oversold areas. In terms of downward risks, the initial support area comes in at the 50.0% retracement at $80.47, and further below is the 61.8% retracement at $78.83 in case selling continues. For the bulls, the next thing that they will have to do is for the price to show consistent strength above the $82.10-$82.15 resistance zones to set up fresh positions. The next notable resistance lies at the 23.6% retracement at $84.13 and the structural resistance at $87.40.