Brent crude's failed attempt to hold above its 200-day moving average has reinforced downside risks, setting the stage for a continued retreat toward key support levels. With momentum lacking, prices could revisit the June lows unless short-term hurdles at $69 and $72 are decisively cleared, Société Générale's FX analysts note.
Eyes on $63 support as Brent struggles to regain momentum
"Brent experienced a steep rebound last month, but the move petered out near $81.40. It quickly gave up the 200-DMA highlighting a lack of upward momentum. On previous occasions (June-July 2024 and January 2025), Brent experienced a gradual extension in decline after failing to establish above the MA."
"Ongoing decline is likely to extend towards June low of $63.30/63.00 and $58.40. Recent pivot high of $69 and the 200-DMA at $72 are short-term hurdles."
