WTI dropped post-FOMC decision

WTI crude oil is trading at $68.80 per barrel at the time of writing. It retreated by -0.82% during the US session on Wednesday, breaking key support structure on the downside as a pause in US interest rate hikes accompanied a bearish forecast for more hikes on the way.

This first pause in about a year has rocked risk sentiment and weighed on the commodity sector.

Additionally, the outsized rise in US oil inventories squashed any bullish prospects for the oil price that might have otherwise derived from the demand forecast from the International Energy Agency leaving the price below key resistance.

The daily M-formation is a reversion pattern and we have seen the price head into the neckline and meet resistance there.