“Davidson” submits:
This chart looks interesting. Momentum investors look for levels at which price acceleration suddenly occurs and then try to trade it. The US$ could fall faster from this point if enough believe it will. Will it take $WTI higher?
Past algorithmic trading would support thinking rapid $WTI rise is likely. For me, it is market psychology and unpredictable even with a decent history of inverse correlation. I own issues which can benefit from a falling US$/rising $WTI because I invest on long-term fundamentals and these issues are relatively cheap based on management’s history of business returns.
I will say higher $WTI/lower US$ is likely. Sanctions on Russia, Iran and now Venezuela support global Democratic ideals. Capital continues to flow back to foreign markets.
