Thursday, July 2, 2009

Crude Oil leads the Correction lower, EUR/USD lags but follows the correlation

I'm sure the chart is clear enough in stating the obvious tight correlation between the EUR/USD and Crude Oil.
Especially since March 2009 both instruments were in a lock step march to new mid term highs . Now however after witnessing a few fake breakouts above 1.4177 in EUR/USD and 1.6660 in GBP/USD the USD Bulls are gaining control and the Crude Oil Aug 09 contract is correcting lower.

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