WTI Price Analysis: Gathers strength for a decisive break

• Oil prices are holding gains built near $72.00 as US Dollar has dropped sharply.
• Investors have digested fears of more interest rate hikes from the Fed.
• WTI has delivered a breakout of the Descending Triangle chart pattern, which indicates an expansion in volatility.

West Texas Intermediate (WTI), futures on NYMEX, are holding gains built near $72.00 in the London session. The oil price is expected to continue to rally as Russia and Saudi have announced voluntary cuts to stabilize prices. However, UAE has denied supporting production cuts.

The US Dollar Index (DXY) has fallen like a house of cards as investors have digested fears of more interest rate hikes from the Federal Reserve (Fed). Going forward, investors will keep an eye on the United States labor market data.

Meanwhile, fears of a bleak global outlook are solid as central banks are preparing for a fresh rate hike cycle to sharpen their monetary policy tools in the fight against stubborn inflation.

WTI has delivered a breakout of the Descending Triangle chart pattern on a four-hour scale, which indicates an expansion in volatility. The downward-sloping trendline of the aforementioned pattern is plotted from June 04 high at $74.36 while the horizontal support is placed from May 31 low at $67.12.

The black gold is confidently trading above the 200-period Exponential Moving Average (EMA) at $71.00, which indicates that the long-term trend is bullish.

Meanwhile, the Relative Strength Index (RSI) (14) is aiming to shift into the bullish range of 60.00-80.00, which indicates that the upside momentum is activating.

Should the oil price break above the intraday high at $72.35, bulls will strengthen and approach upcoming resistances to June 04 high at $74.36 and April 28 high at $76.85.

On the flip side, a downside move below May 31 low at $67.12 will drag the asset toward the $65.00 support followed by the ultimate support around $64.31.

WTI four-hour chart