Guys, just wanted to give you heads up into the open. Though futures have been tame (picked up in the last 30min while I was writing on my site) and we are due for a pullback from a very overbought condition, the action of the AUD/USD and the USD index is leading me to believe that we may be in for a potential reflation rally to start off this week (Bloomberg has an article on it as well). We’ll have to see what changes at the open, but may need to wait for Bernanke’s comments on his ‘exit strategy’ plans first…
And the USD index below:
Great post, everything sets up for a near term rally for the bulls. But I don’t think it will effect the long term trend charts, we are going lower. Still much lower. Gotta trade the market that is given to us today though!
July 20th, 2009 at 1:03 pm
Thanks Crude Oil Trader,
You have to wonder if we’ll be seeing some sort of decoupling with the dollar in the near future or whether it’ll manage to catapult the market to new highs (perhaps today or after a bit of a correction)…because in real terms we are still well below the May and June tops. But the thing that is sure is that for oil and other commodities everything is still going to be about the greenback.