Last week WTI and Brent crude oil futures made weekly-scale top extensions. Both had already made daily-scale top signals as reported in the January 10th edition – only the new WTI signal is shown here, as they are identical in appearance.
At the same time the slide in shorter-term US Treasury note prices has resulted in a weekly-scale bottom extension in the 5-year note:
These have the usual meanings – watch out for a pause or reversal in the embedded trends of both these markets.
The recent US$ weakness has also produced an extension at a daily scale in the US$/NZ$. This is not a major currency pair of course but when placed alongside the US$ index chart, you can easily see that it has moved quite closely (although inversely) with that important index:
This is a warning that we should not get too complacent about the US$’s downtrend – there may be some rallies ahead, even though we think that there will be more weakness eventually. Take care not to let profits evaporate in the meantime.
