Crude oil prices persist in their downward trend, putting pressure on a key support zone

WTI oil prices remain down for the third consecutive day, impacted by rising hopes of a ceasefire agreement in the Middle East and an increase in U.S. crude inventories.

Persistently high U.S. inflation continues to dampen expectations of interest rate cuts and raises concerns about a potential weakening in demand under the current circumstances.

The daily chart indicates growing negative signals, with bearish momentum strengthening as the price falls below the 10-, 20-, and 55-day moving averages, and a failure swing pattern on the verge of completion.

In early trading on Wednesday, prices reached a five-week low and are pressuring the key support level at $80.00, which aligns with a psychological level, the Fibonacci 38.2% retracement of the $67.70/$87.61 range, the 200-day moving average, and the top of the rising daily cloud.

Bears may encounter resistance at this level, although the overall outlook remains negative, with the widely anticipated decision from the U.S. central bank to maintain its current stance and keep interest rates high for an extended period, which could further harm demand.

A sustained break below the $80.00 zone would provide a strong bearish signal for a deeper correction of the December/April $67.70/$87.61 rally, potentially exposing targets at $77.86 and $76.66 (100-day moving average and 50% retracement).

The broken 55-day moving average ($81.33) serves as initial resistance, followed by the falling 10-day moving average ($82.46) and the upper break point at $83.99 (20-day moving average).

Res: 81.33; 82.46; 82.91; 83.99

Sup: 80.00; 79.27; 78.90; 77.86