Crude futures strengthened from our bottom-end support yesterday despite higher than expected Crude Oil Inventories for the fourth straight week.

Despite the concerning increase in supply, crude is finding comfort in better than expected economic data from the U. S. coupled with depreciation of the Dollar.

Consequently, analysts are expecting rampant inflation in America. Improving economic data is encouraging to investors because it sparks the hope that production can pick up along with the consumption of crude.

Furthermore, a depreciating Dollar makes Dollar-denominated commodities such as crude more attractive for international consumption.

Gold recovered well from our 1st tier uptrend line after Treasury Secretary Geithner alluded to the fact the U. S. would not be opposed to migrating from using the Dollar as the standard international currency.

Consequently, gold flexed its negative correlation with the Dollar, which is interesting because U. S. equities have been positively correlated with the EUR/USD, GBP/USD and USD/JPY throughout the heat of the crisis.

Such movements indicate that the correlations may be shifting between U. S. equities and the major Dollar pairs.

However, this is merely a hypothesis based on observation and will need to be clarified further. What we can say is that the uptrend for Gold has been rescued for now.

Rate dips on news, clears stops under 1.3450/60 and sovereign bids seen into the lows. Rate makes highs in NY after the news suggesting the rate is attractive on dips and shorts are weak. Action remains two-way; is not advancing as aggressively yet. Stops likely building above the 1.3740 area.

Rate two-way and violent, likely stops under 1.4600 area cleared with bids around 1.4550 taking the other side. Lows late in the day argue that the toolbox signal valid; aggressive traders could lighten up on longs near-term. Traders report large names on the dip and the rate is likely to follow EURO higher if EURO can rally.

A violent day was had by all today as the USD whipsawed in big ranges before ending the day mixed. Comments by Treasury Secretary Geithner combined with better-than-expected US data combined to confuse traders in both directions but USD bears appear to prevail into the end of the New York session. Speaking on the possibility raised by the Chinese of a one-world economic currency were deflected by Geithner into a possibility of increasing SDR money through the IMF were misinterpreted on face-value throwing the USD into a big slide against the majors extending lows back under important intraday S/R; the Greenback recovering against some pairs but not others as the day wore on.

The USD/JPY is struggling with our 3rd tier downtrend line as it tries to ascend past key February highs. The next 24-48 hours are crucial for the USD/JPY.

For if the currency pair can climb past February highs then we will finally see a retest of 100 with the possibility of large near-term gains.

On the other hand, if the USD/JPY can't brave through February highs within this time frame, we could very well see the currency collapse back into its downtrend with a movement towards our near-term uptrend line.

With key economic data coming from both Japan and the U. S. in the next 48 hours, the USD/JPY will certainly have the fuel to ignite a fundamental movement in either direction.