WTI crude oil is in correction mode, as price retreated from $73.17 per barrel and is closing in on support areas visible on the 4-hour time frame.

Price is near the 38.2% Fib retracement level and rising trend line around $71 per barrel. A larger pullback could dip to the 50% Fib at $70.39 per barrel or the 61.8% Fib that lines up with the 100 SMA dynamic support at $69.75 per barrel. This is also near a former resistance zone that might hold as support.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. In that case, crude oil could recover to the swing high soon.

Stochastic is still heading lower to show that selling pressure is present, but the oscillator is approaching the oversold region to signal exhaustion. RSI has more room to move south, so price could follow suit while bearish energy is left.

A break below the trend line support around the $70 per barrel major psychological mark could set off a reversal from the uptrend.

The upcoming inventory reports from the EIA and API might show another smaller build or a draw in stockpiles, as supply has been crippled by production facilities being temporarily shut down due to weather disturbances.

Central bank decisions this week, particularly the FOMC, would likely impact crude oil price action also. Note that the FOMC is widely expected to share more details on its taper plans, possibly confirming that they would start reducing asset purchases by November.

If that’s the case, commodities could take hits along with other higher-yielding assets since this would put the Fed closer to hiking interest rates. Any changes to economic projections and their dot plot forecasts would likely have a strong impact across the markets.