Earlier this week, U.S. crude oil prices turned lower from the $84.40 area for a second time this month.

Are oil prices headed lower? Or are the bulls just taking a breather?

WTI Crude Oil (USOIL) 4-hour Chart by TradingView

As mentioned in today’s Each day Broad Market Recap, commodities like crude oil took hits from overall U.S. dollar strength. The Black Crack, particularly, drew in bearish plays as concerns over the impact of Hurricane Beryl on Texas oil production eased.

Do not forget that directional biases and volatility conditions in market price are typically driven by fundamentals. When you haven’t yet done your fundie homework on crude oil and the U.S. dollar, then it’s time to envision out the economic calendar and stay updated on day by day fundamental news!

WTI crude oil, which has been making higher highs and better lows since late June, got rejected from the $84.40 area for a second time this month. It didn’t help that the resistance zone is near the R1 Pivot Point line.

Is the commodity done with its uptrend? Or are the bulls just taking a breather?

WTI is trading closer to $82.25, which is true across the S1 ($81.66) Pivot Point line, 100 SMA, and a previous area of interest.

A few decisive bullish candlesticks or sustained trading above $82.25 sets WTI prices for a possible retest of the previous $84.40 highs. And, if the basics favor risk-taking or turn against the U.S. dollar in the following few days, we might even see latest monthly highs for the asset.

Alternatively, sustained trading below the 4-hour trend line or the S1 Pivot Point support opens the potential of a bearish breakout.

WTI could attract enough bearish demand to go for the S2 ($80.03) Pivot Point area if not the $79.50 levels near the 200 SMA.

What do you think that? Will oil prices turn higher or lower from its current consolidation?