Dollar/Oil correllation

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denby45

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Dollar/Oil correllation

posted on Apr 14, 2010 01:20AM

Guys

Did anyone notice the disconnect between the inverse correllation of the Dollar and Oil. Since the end of November they have both been rising together. This is not normal and I'm guessing the strength of the dollar has been holding back the price of oil to a certain degree. However there is a chance the dollar is reversing now as it has crossed the 50 day MA which has been acting as a support and may become the resistance should a reversal be confirmed.

You can see from the chart where we have crossed the 50MA. Any weakening of the dollar would usually support the markets. Also the on/off Greece affair has in my opinion shaken out the weak hands and so I can only see one direction for the markets from here. The Bulls are not finished yet.