From Chris Kimble: The US Dollar (CURRENCY:USD) has shown strength versus the Euro (CURRENCY:EUR) since 2008, with the “meat” of that strength coming in the last 3 to 4 years. This strength worked as a headwind for precious metals, emerging markets, and at times, the domestic economy.
But that market dynamic is at a crossroads… and may be nearing a turning point.
A currency “shift” here would have short- to intermediate-term consequences for various assets across investors portfolios. So investors need to stay tuned. This could also usher in some volatility, as traders look to re-align their currency hedges and interests.
As you can see in the chart below, the US Dollar hit dual resistance at the same time that the Euro hit dual support. And currently the Dollar is attempting to break a key rising support trend line. This comes at the same time that the Euro is attempting to breakout over key downtrend price resistance.
Could these reversal patterns mark a turning point in the global markets for traders?
The WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSE:USDU) was trading at $26.58 per share on Monday afternoon, down $0.02 (-0.08%). Year-to-date, USDU has declined -4.97%, versus a 7.09% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.