A German business climate survey came in above expectations reversing the Euro and sending it higher. The strong rally in the Euro brought it closer to a major 50% retracement upside target at 1.3510. The overnight move also erased Thursday’s negative tone which was triggered by a bad PMI number.

Demand for higher risk assets and the assumption the global economic recovery is back on track helped to drive up September Crude Oil on Tuesday. After forming a secondary higher bottom at 71.92 early last week, the main trend turned up when the market crossed the last swing top at 77.84. The chart is now indicating the market is on pace to test the 50% level at 80.90.

A late surge in U.S. equity markets helped put the three major indices in a strong position to challenge their highs for the year. Traders looking for increased risk drove equity markets higher from the start on Tuesday although there was a little pause in the upside momentum at the mid-session.

The U.S. Dollar overcame early weakness to post a weekly closing price reversal bottom. This move doesn’t turn the trend to up, but is a strong indication that the Dollar will rally for 2 to 3 weeks. A follow-through rally through .7734 next week is needed to confirm the reversal bottom. The main trend will turn up following a breakout over .7997.