King Dollar hit a cluster of support and the bottom of the falling channel (1) 6-months ago and a counter-trend rally took place. The rally over the past 90-days has been strong, taking it back to the top of the falling channel at (2). The US$ rally has been hard on Gold & Silver, as they have experienced sharp declines.
Joe Friday Just The Facts– As the week is coming to an end, King Dollar looks to be creating a bearish reversal pattern at (2), which is the top of its 18-month falling channel.
If the US$ breaks below 93, it would increase the odds a short-term top is in play, which metals bulls would love to see. Investors shorting metals or looking to short metals, do not want to see the US$ peaking here, they want to see a breakout of falling channel (1) at (2)!
The Invesco DB US Dollar Bullish (UUP) closed at $24.95 on Friday, down $-0.20 (-0.80%). Year-to-date, UUP has gained 3.83%, versus a 5.22% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.