“Resistance Test” for the Dollar? Does that sound odd to you? Well it is true that a key test is at hand for the Dollar in the chart below.
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Resistance is resistance until broken! Dollar is facing a key level at line (3) in the chart above. Commodities were fairly soft last week and many want to point a finger at the Dollar. If you are long commodities (metals, grains or softs) a upside break of line (3) in the Dollar, should be the key indicator to lighten up on those positions.
Inverse commodity ETF’s should do VERY WELL, should the Dollar break above line (3), since so few of investors are bullish the Dollar and the next key resistance level is several percent above current levels.