Will the dollar break 86.00?

Crude continues to consolidate just under the 70 dollar level and this has put the U.S. Dollar Index in a position to try and rally for the 86.00 again.  But any break of this level would requite crude to break below the 65.00 level and stay there for any sort of dollar rally to stay intact.

The inverse relationship between the dollar index and crude oil should not be taken lightly.  Second only to the dollar rally due to it’s popularity as the world’s safe haven currency is the fact that crude oil has ben falling.

So the rejection just below 88.00 on the dollar can be attributed to crude oil support at $61.30.

The daily chart of the dollar does have some interesting levels to consider, the 1597 and 987 EMAs are setting up a nice range that the dollar is likely to bounce within with 83.00 support to the downside and 88.20 to the upside.  I’m rounding off here to the closest psychological numbers as these are most likely the key decision areas.