Risk-Off Returns as Oil Surges and Bonds Slide, Markets Watch Key Support

Good morning, traders!

jumped to its highest level in over a month, while bonds sold off on Monday as escalating US-Iran tensions revived inflation concerns. Meanwhile, stocks stabilized after last week’s tech-led decline, but risk-off sentiment remains present across markets.

Crude oil is now approaching potential resistance, which could trigger at least a temporary slowdown, while stocks are nearing important support levels. However, there is still room for these trends to extend, meaning a meaningful reversal may not happen immediately, especially if bonds continue moving lower and provide further support for the .

The chart appears to have completed the projected abc correction, opening the possibility for another move lower. At the same time, the could be turning bullish again, particularly if it breaks above channel resistance and the 101 level. On the other hand, if risk sentiment improves and bonds resume a more complex recovery, the dollar could face another deeper corrective decline.