US Oil headed to $48.00? – BBH

By FXStreet Analysts at Brown Brothers Harriman noted the action across key related markets.

Key Quotes:

“Although oil prices pulled back ahead of the weekend, it was only the second decline in the past eight sessions. However, the price of June light sweet crude oil is up less than 30 cents here in May. Technical considerations are still constructive, but the rally, which has seen prices rise in five of the past six weeks is stretching the momentum indicators. There is initial potential toward $48 provided the $45 area offers support.

US 10-year Treasury yields slipped below 1.70% for the first time since early-April. The yield fell nearly eight basis points last week and finished nearly on its lows. The June futures firmed and finished 1/32 below 131-00. They look rich and face resistance in the 131-06 to 131-14 range. The technical indicators are not generating strong signal.

The S&P 500 lost 0.5% last week and closed at its weakest level in a month. The technical indicators warn of additional losses. These initially can extend into the 2030-2040 area, though since the 2100 area was sold, we emphasized the risk of …read more

Source:: FX Street