Inside technicals and chart patterns by 
The answer could be in the crude oil market…
Correlations and psychological numbers…here they are:
I’m looking at the current bounce that crude get when it has been piercing 68.00. There is support at 67.69 and 67.77 as those two levels were where crude bounced from last.
The U.S. Dollar Index has continues to rally from the drop of the last two sessions. The dollar is back above 84.00.
If the crude oil market continues to rally to and through 69.00, the dollar’s 84 level is toast. The “safe haven” rally that the dollar has been enjoying is likely to still be the case…unless the EUR/USD can find its way above 1.3400. It won’t be a magical or sudden shift in stance but the sustained strength of the Euro will eventually whittle away at greenback strength.
This is the second significant correction in the dollar since the Summer breakout.
- Raghee
Hi Raghee!
A beautiful correlation here, as always!
nce again, your emphasis on putting the Dollar Index out in front with your analysis is superior.
It provides so much useful information that we need on correlation and sentiment as we begin our trading day…
Thanks buddie, crude is lower right now…trading below 66.00 and *bam* the dollar is rallying up towards 85.00!
These correlations are important just as you said and the more we see the interconnectivity of the markets, especially futures (dow, dollar, crude, gold) and the forex, the better our analysis and entries will be.
I’ve always felt that my background in futures was a terrific”edge” and that’s what I am hoping to share.
Thanks for your feedback!
Nothing like great analysis from a beautiful woman