From Streetwise Reports: Technical analyst Clive Maunds discusses the outlook for the dollar, euro and precious metals sector after the predicted major dollar breakout occurs.
Yesterday saw one of our most important predictions become reality–the dollar broke decisively out of its Head-and-Shoulders bottom. We can clearly see this breakout on the latest 6-month chart for the U.S. dollar index shown below. Fundamental reasons for this are believed to include the current (weak) trend to higher rates in the U.S., and perhaps more importantly, the euro starting to unravel if Catalonia succeeds in its push for independence from Spain. Whatever, this chart says the dollar index is going to advance to our target in the 97 area.
The VanEck Vectors Gold Miners ETF (GDX) fell $0.12 (-0.53%) in premarket trading Monday. Year-to-date, GDX has gained 7.89%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.
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