An update of my intermarket correlation chart. Directions have never changed and recent events such as the Oil crash have merely bend the curve towards its goal and created a faster incline as it correlate with the US stock market and USD devaluation. Now that we move into a period of worldwide easing of pandemic preventive measures an accelerated momentum of Oil demand likely supports this also fundamentally.
DXY has seen some appreciation at the same time of the stock market crash which agrees in turn with current stage of the UJ Seasonality opening bell, we also recognise by the negative correlation of DXY and the US stock market.
Gold could do another test of the lower range but I see likelihood for a continuation of momentum towards the upper boundary of the range, which in turn then increases the likelihood that it will break.
With Gold breaking the upper range I would then expect everything to push through and allow USD the reach new lows while Oil and the stock markets will likely draw very bullish candles.
The alternative is that the above move of the markets is postponed till Tuesday or Wednesday at London open. Then this Monday we could see Gold go for the second test of the lower range, Oil slightly pull back and US stock market extend its pullback a less bearish candle down.
