Oil, Ethylene, and Polymers Prices Gain Momentum as US Dollar Sinks

ENERGY MATRIX

Energy Matrix provided by e-globalTrading

As previously announced, the US Dollar was the main player and direct responsible for the current energy price movement. The Dollar Index completed the predicted breakdown below the 92 area, which is now showing additional room to go down.

Next level of decent support is only located in the 89 area. The Crude Oil and Ethylene are definitely showing strong up-momentum to lead the polymer's bullish situation in every time frame. Note the high energy shown by Polyethylene and PVC; both are showing recent solid highlighted BUY Alerts.

Also note that Natural Gas and Ethane are still slightly behind in terms of bullish momentum, which is probably due to its early breakout, compared to Crude Oil and its corresponding downstream breakthrough.

Additional US Dollar down move will probably lead the energy market to more bullish alignment in every energy chain component.

Bottom line, we need to be focused on the current USA pandemic consequences, which will determine the new administration's economic relief package and its corresponding negative currency impact. Stay tuned!

CRUDE OIL