For those of you that looooooove technical patterns and set ups – crude oil is starting to look good.
If we’ve established that The U.S Dollar is set for a solid turn lower ( which we have! ) then it only makes sense that commodities “priced in USD” should be shaping up to make the inverse move higher.
Crude Oil Set To Move Higher
Crude_Oil_Entry
Considering this incredibly long period of consolidation / distribution in most asset classes, it looks like we are finally going to see a number of “standard correlations” come back into effect.
A large move lower in USD being the key factor, as these assets priced in U.S Dollars begin to move higher.
I’m simply ignoring “any and all” other news with respect to inventory / consumer demand etc as oil will take a sizable jump on further USD weakness.
Why would the Dollar be getting stronger when the ECB announced today that they would be lowering interest rates?
Hey Jack.
You just cant look at a single day er two of trading in formulating a plan / view of the larger picture.
USD has bumped up these last couple of days but still much lower than days past.
Pull up a 4 hour chart on $dxy or $usd and you should see it.
Downtrend in USD…..but a small intra day bump ovr last 24 hours.