Oil is extremely bearish. The “Black April” oil even consequences are reflecting on the price. Bears are dominating.
According to Forex Live, the risk mood continues to sour further after the IEA report, with oil prices threatening a firm break below the $20 level now.
If we see another drop in oil, which might happen it will be enough to set off a further wave of risk aversion in the market. 24.76 zone is a potential zone for short trades. We can see that the market shows a big descending trend line with clear short signals on my template. Targets are 17.73 with 11.95 as a monthly target. If Oil drops below 20 on a daily close we will see a drop without a further retracement.
Many green pips,
Nenad Kerkez aka Tarantula FX