Is the crude oil bounce weakening the dollar?
Crude oil is bouncing of yesterday’s fresh low at 61.30. As crude oil is 1) attracting some buyers just above $60 and 2) moving highers on some shorts taking profits off the table…there is a near term high on the dollar index at 87.85 - 87.88.
The resistance intraday between 65.00 and 66.50 is thick enough that it is unlikely that crude will successfully rally through this level with the current overall strength in the dollar.
This presents some correction-trading opportunities in pairs that are moving with the crude oil bounce, like the USD/CAD and EUR/USD. The fiber may not be a comm doll but the dollar-crude connection will play out none-the-less.
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