As King Dollar Tries To Break Support, It’s Bullish For Metals

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As King Dollar Tries To Break Support, It's Bullish For Metals

The USD

This chart looks at the US dollar, reflecting that it has spent the majority of the past 14 years inside of rising channel (1).

Over the past 3 years, King Dollar could be creating a series of lower highs and lower lows inside of falling channel (2). It hit the top of the channel a few weeks back, near the top of the new falling channel and some selling pressure has since taken place.

USD weakness has it trying to break support of a bearish rising wedge at (3).

Continued dollar weakness will send a positive message to commodities, especially gold, silver and the miners. What it does at (3) will send an important message to the hard-hit commodities space.

Full disclosure: Metals members have been long gold for a couple of months.

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