Oil recovers back to vital level offering window of opportunity

• Oil price ties up with a third consecutive day of gains on Friday. 
• Traders are buying back into Crude with fears of recession abating. 
• The US Dollar Index trades at a pivotal level ahead of the weekend. 

Oil price is rallying over 4% in a three-day winning streak after the commodity was crushed by recession fears earlier this week. Traders are buying back into the Black Gold with an eventful calendar ahead next week and some supportive headlines for Crude prices, with Israel giving the green light for talks again with Hamas. Meanwhile, Yahoo! Finance has reported that an Indian company has received a waiver from US authorities to purchase Crude from Venezuela. 

The US Dollar Index (DXY), which tracks the performance of the US Dollar against six major currencies, is playing with fire and might see its recovery efforts pointless. The DXY has attempted for a fourth straight day to close above a pivotal level and is, yet again, giving up on Friday. This could point to a more substantial US Dollar outflow and result in another leg lower for the Greenback against most major peers on the quote board in the coming week.  

At the time of writing, Crude Oil (WTI) trades at $75.19 and Brent Crude at $78.75

Oil news and market movers: Headlines pick up 

• Yahoo! Finance reports that Reliance Industries in India has received approval from the US to resume its oil trading with Venezuela. 
• Oil will have a very full week ahead, with headline risks from the monthly OPEC meeting and the International Energy Administration (IEA) report. The Chinese Industrial Production data for July will also move the needle for Crude prices.
• The recent correction in Oil prices could be a welcomed surprise for US consumers at the pump, and a rise in demand could be expected in the coming weeks, according to the Wall Street Journal. 
• The weekly Baker Hughes US Oil Rig Count will be released at 17:00 GMT on Friday. The previous number was 482, and no forecast is available. 

Oil Technical Analysis: Pivotal recovery point

Oil price is trying to continue its recovery, with a third consecutive day of profits. However, it might get tricky from here, with a pivotal level at $75.27 making it hard for bulls to cross above it. A second rejection, right at the end of the week, might mean issues ahead, while a break and close above might point to another leg higher to $77.70.

On the upside the first level that is imperative to regain control above is $75.27, which is into play as a pivotal level before heading back to the 200-day Simple Moving Average (SMA) at $77.70. The two other major moving averages reside very close, with the 55-day SMA at $78.58 and the 100-day SMA at $79.88.

The Relative Strength Index (RSI) has rebounded a touch in the daily chart, meaning there is room again to trend lower. Looking down, the first level to watch out for is $72.00. Once a new low for August gets printed in the charts, another leg lower would not rule out $68.00 or even $67.11, an 18-month low.

US WTI Crude Oil: Daily Chart