There has been a relatively strong inverse correlation between the US dollar and the markets, particularly commodities. Just when it looked like the USD might be turning bullish again (thus bearish for markets), it turned back down over the last couple of days. It was unable to breach the support level (blue line), making it the fourth failed attempt since the beginning of the rally in March. A turning point in the USD would need this support level to be breached, and that might signal a more definitive top in the market.
No comments:
Post a Comment