Oil hits session lows as risk-off mood intensifies
Sellers are having a field day since overnight trading after the break below the 100-day MA (red line). That means that the bias for the pair is now more bearish and with markets in a heavy risk-off mood, we could see more declines still to come.
Equities are hitting fresh lows on the day while Treasury yields are extending their decline, with 10-year yields down 5.4 bps to 2.159% now. In Europe, 10-year bund yields are at record lows as they sit at -0.206%.
For oil, further support is seen closer to the March low @ $54.52 with the 50.0 retracement level of the recent swing move higher @ $54.48 also offering some minor support.
Update: That was quick, price has now fallen to fresh lows of $55.02. Scratch that, make it a 3% decline now as price falls below $55.00. Ouch.
