Crude oil turned down Friday keeping it bound by its descending triangle.
This indicates to me that it wants to challenge its 50$ support. With horizontal support levels, I have the “three times and your out” outlook. It tested the 50$ price in June and again in August. The third try will be reveling. Fundamentally, I think crude is a buy at 50$ and a sell at 70$, but I will let the market paint the picture for me.
The British Pound looks like it wants to make a double bottom.
A break of the 1.2 support will most likely send to its 1985 low where it almost traded at par with the USD.
The USD is slowly grinding up.
A clean break above the 103 level will be extremely bullish. No doubt the political class will try to “talk it down” if it breaks this level. Mr. Mercantilism will give us more tweets like this as the dollar rises:
