Oil is below the psychological support at $70 and threathens cahrt support at $69.60 in early US trade. A break of that level could set off another wave of profit-taking in the global reflation trade.
Much has been made of the strong Chinese economic rebound of late but doubts are beginning to grow regarding the sustainability of the rebound with global demand still quite weak. That has hit commodities broadly and helped lift the dollar off the mat in recent sessions.
A clean break of $69.60 could see 1.3800 come back under pressure.
