Correlations

*source Factor Ad visors, Reformed Broker

USD BreakOut

USD on the higher side can forebode more downside for commodities

US Dollar

US has fallen back to its previous range. USD was stuck in the range of 73.50 to 76.50 for 6 longs months. and then it broke the range to enter the another higher range of 77.50 to 81. thought i feel that USD should remain in the upper range of 77.5 - 81 as it US economy is slowly showing some signs of prospect and right now its much better placed than europe. USD might only remain in the lower range or breach the lower range if QE 3 is around. right now there is a lesser probability or possibility of QE3 in next 3 months

Dollar Breakout

DOllar has moved passed its resistant and broken out of it range. there are a previous breakout also last time in july but it tuned out ot be a fake one and market went back into its previous range. Dollar hold key to most of the markets right now. Since most of the markets are clueless and stuck in a range, a break out in dollar would be important for the direction of the market

USD vs Stocks

Historically US Dollar and equity markets share a negative correlation. USD after making a low, is showing some strength and might bounce back. this is not a good sign for equity market whcih is already on its weaker side. any appreciation is USD can bring a decent correction in equity markets

US Dollar - Will the trend sustain

Dollar bounced back from its low and was trading around its 50 DMA. A close above 50 DMA will be a very bullish setup for US dollar. With QE 2 in its last leg and no QE 3 in offing, US dollar might bounce back harder then expected souring the commodity rally. All commodities are below their 50 dma which is quiet bearish for commoditites

Correlation between US equity Market and USD

For the first time i have seen S&P 500 and USD moving in tandem. it may be aberration or it might be signals of tectonic shifts in world economy

Purchasing Power of Dollar

trend reversal in Dollar

Though i m not a great elliot wave fan. But charts suggests that dollar fall might come to a halt and find some support to rally again.

Dollar Vs Equity

i think QE 2 will push dollar down and Equity up. Markets are waiting for an event to break out.QE 2 might be tht event