EUR/USD and the 10 year note.......

After the realase of the .6% rise in CPI the cheerladers of CNBC keep touting how it's good news inflation is rising and consumers are paying more for energy but spending less in other areas thus keeping prices low in those areas. They seem to think this is bullish news for the dollar.....
Perhaps so for the short-term jaw-boning of the media enhanced G8, but looking longer term into reality I think the chart below speaks for itself..........
.....and this multi-year chart of the ten year note appears to be a MASSIVE H&S pattern spanning decades. The latest move up is merely a retracement back to the shoulder-line and the more daunting line here is the falling 200 EMA which is still falling hard through 55. I don't see this busting throuh 52.50 any time soon. Higher rates to quell inflation you say? I think not. I believe the consumer has run out of gas globally and overall demand will cool and consumption will curtail pushing oil back to reality in the $80,s (that is after it hits $160). This could take awhile to unwind and it all hinges on oil now. So until black gold's upward assault faulters I'd be looking for Southeasterly movement from the indices.