WTI Crude hovering below the key resistance trendline. Crude oil inventories (15:30 GMT) may lead to a re-test.

WTI Crude currently trading around $78.48 a barrel. We can see that on the daily interval, it has approached and tested the tough resistance sat around $80.20 but failed to close above it. The crude oil inventories come out later today (15:30 GMT), and analysts predict a drawdown of 1.166M barrels compared to 2.423M in the previous week. A positive figure could see the price of crude re-test the resistance levels and potentially hike higher. The target would be $82-$83 by the end of the week/start of next. However, a negative report could lead to the continuation of this long-term bearish trend, especially after the stronger-than-expected inflation data yesterday. The data suggested that the Federal Reserve could continue with its hawkish stance and continue to rise interest rates. Higher interest rates, generally speaking, strengthen the dollar and a stronger dollar affects the price of crude. Hence, towards the downside, support currently sits at $77.69 then at $76.69. A break below $76.69 may see the price decline as far as $73 (when compared to previous patterns). MACD is slightly positive but swaying heading towards neutral and RSI is neutral as it reads 50.