OIL Correlations V USD/CAD and EUR/USD

Viewed from the 5 and 10 day averages, WTI Crude Oil Correlates to USD/CAD 0.25 or 25% and 0.08 for the 10 day average. The 15 day average is the cutoff as the Correlation turns negative -0.69 and -0.72 for the 20 day. The bottom of the 15 and 20 day Correlation is located with help from Fisher at -0.848 and -0.908.

EUR/USD Correlates to WTI Crude on 5 and 10 day averages at negative -0.55 and -0.20 or -55% and -20%. The correlation turns positive at the 15 day average at 0.378 and 20 day at 0.43, better viewed as 37.8% and 43%. The bottom of the 5 day Correlation is -0.618 while the top of the 15 and 20 day are found at 0.398 and 0.460 or better viewed as 39.8% and 46.0%. The 21 day average helps to view the wide distance between the 15 and 20 day average as the Correlation is 0.39 or 39% and a top at 0.412 or 41.2%.

Brent, European Oil, Correlates to EUR/USD on 5 and 10 day averages at -0.54 and -0.34 or -54% and -34%. The 15, 20 and 21 day averages Correlates at 0.239, 0.333, 0.295.

USD/CAD Correlates to Brent on 5 and 10 day averages at 0.149 and 0.198 or 14.9% and 19.8%. The 10, 20 and 21 day Correlations are found at -0.588, -0.642 and -0.643 or -58.8%, -64.3% and -64.3%.

EURO nor USD Correlates to its own respective Oil. The EUR/USD and USD/CAD trade Vs Oil is Non existent.

WTI targets are found at 46.33, 48.34, 47.97. Extreme buy/ sell points are found at 51.05 and 47.88 Vs long points at 43.83 and 41.83.

Brian Twomey, Inside the Currency Market, btwomey.com

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