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USD/CAD and Crude Oil Come Back to Inverse Correlation

Posted on May 14, 2009 at 20:16 in Commentary, Market Analysis by Tim Salem

 

 Hello Everyone, and Welcome to Friday!

With the Weekend approaching, and the Weather warming up for Summer in the States… We are coming upon the “Traditional” Summer Driving Season as our Memorial Day Weekend nears.

In our current Climate of Economic Uncertainty, we naturally think of Petroleum Prices spiking as Driving Demand increases over the Summer Months.

( Here in Phoenix this is not a Concern, as we drive for 17 Feet and begin to Melt anyway… considering the “Pizza Oven” this Place is in the Summers… hee hee hee…    ;-)

With the current Rhetoric of Energy Demand and Production, we can observe our “Normal” Inverse Correlation of Crude Oil and the Dollar Canadian Unit… despite the Unwinding of Correlative behavior concerning the “Low Yielding Safe-Haven Behavior” of the Dollar in recent months.

Here are both Daily Views in the Mid-Term… and as long as OPEC keeps tightening Production… The Loonie will continue to Strengthen and follow Its Daily Bear Flag Formation, and Crude Oil will continue Its Appreciation towards the $75 Area.

 

Give the Captures a Click for Commentary, and Post-Time is 1:15 GMT.

 

 

 

 

 

 

 

With the “Distant” Affect the Asian-Pacific Sectors tend to have on either of these Units… we will need to drill down on the Hourly Views around the 8:00 GMT Update right after I submit the “Currency Majors Technical Perspective” Report at 7:00 GMT.

Please join me and i hope to see you in a few Hours!

:-)

 

 

 

 

Tags: accumulation, bear, Bull, channel, crude oil, Distillates, distribution, energy, flag, formation, inversion, pattern, Petroleum, Reserves, USD/CAD

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