From Chris Kimble: From 2011 to the start of this year, the U.S. dollar has been pretty strong, as it rallied nearly 30% in 6-years. Over the past 30-weeks, however, King Dollar has been rather weak.
Below looks at the USD over the past 18-years, with 30-week performance applied-
King Dollar has declined over 9% in the last 30-weeks at (1). As one can see, this sharp of a decline in 30-weeks hasn’t taken place a ton of times since the late 1990’s. The decline has the US$ testing the bottom of a 24-month trading range and two rising support lines at the same time at (2).
This decline has bullish sentiment towards the US$ at the lowest levels in the past three years, according to Sentimentrader.com, reflected in the chart below.
With few investors bullish, King Dollar at this time and a triple support test in play after a rare 9% decline in 30-weeks, what the US$ does at (2) in the top chart, could become very important for the Dollar and many commodities.
Gold & Silver have not pushed much higher while the US$ has been very weak. This makes the price point in the US$, all the more important to the metals sector, if this triple support test would hold.
The PowerShares DB US Dollar Index Bullish (NYSE:UUP) was trading at $24.26 per share on Wednesday afternoon, down $0.11 (-0.45%). Year-to-date, UUP has declined -8.31%, versus a 11.77% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.