Dollar dips after Fed rate hike, oil hits one-week high

Oil prices rose to a one-week high on Wednesday, while the dollar fell to a six-week low after the Federal Reserve raised interest rates slightly, as expected, while signaling that further hikes were imminent. U.S. crude futures settled at $70.90, up $1.23, or 1.8%. Oil markets shrugged off weekly U.S. Energy Information Administration (EIA) inventory data, which showed crude stockpiles rose by 1.1 million barrels last week to their highest level in 22 months.

As seen from the technical charts, as the RSI and the stochastic index have rebounded from the oversold area, and the oil price has just returned to above the $70 points, it is expected that the oil price will temporarily see a breathing space. The resistance level is estimated at $71.40 and $72.50, and the larger resistance is estimated at the 25-day moving average of $74.40 to $77.50. The lowest support look back at $68.80 and $66.70, and the key level is US$64.

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