WTI Crude OIL

While price action is still above the rising trendline drawn from the 35 lows seen in early March 2009, the FUEL of economic growth –OIL may have topped out at 74!!

Reasons ??

• MACD divergence
• Price has near exactly retraced to the 38.2% retracement target and has been unable to breach it

While a test of 67 in pretty imminent, a break below 65 would serve to confirm the bet that oil has indeed made its intermediate top.


Implication is pretty straightforward – Dollar staging a comeback against commodities.

Indian Rupee

The USD/INR seems to be forming a clear double bottom pattern, which puts the odds in favour of the dollar. A sustained break of 48.90 should set the stage for a test of 50.20-50.40 near term .Given the recent range-bound movement in the pair, could expect to see a swift volatile move upon this breakout