WTI Crude Under $72.50 as NFP Looms, Bearish Channel Forms

WTI crude oil stayed below $75 against the dollar, slipping under $72.50 as traders turned their focus to Friday's U.S. nonfarm payrolls report. The dollar's recent strength, supported by expectations that the Federal Reserve will keep rates higher for longer, has weighed on commodities priced in the greenback. On the 4-hour chart of XTI/USD, the price dropped below $70, settling well under $72, the 100-period simple moving average, and the 200-period SMA. A declining channel with resistance at $70.85 is forming.

If a recovery wave emerges, the price could face resistance near that same channel. The next hurdle sits at $73.00. A more significant barrier for bulls lies near the 23.6% Fibonacci retracement of the move from the $98.72 swing high to the $68.61 low, at $75.72. The main resistance is near the 100-period SMA and $78.50. A close above $78.50 could send oil toward $80. Any further gains might target $85 in the near term.

On the downside, the first major support is near $68.50. Below that, $66.50 opens up, with $65 as the next key level. A daily close under $65 would open the door for a larger decline, with bears potentially aiming for $60.

Friday's NFP report is the next catalyst. A strong print would likely push the dollar higher, adding more pressure on WTI. A miss might offer some temporary relief. Still, the technical setup remains bearish until crude reclaims $72 and the moving averages. The dollar's path from the payrolls data will set the tone for oil in the sessions ahead.