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The U.S. Dollar has rallied since the summer of 2011, almost 2 years! The rally has taken it up to a resistance line that has been in place since 2005. Bullish sentiment levels at this are lofty reaching levels hit only 5 times in the past 5 years.
The combo of this line and high bullish sentiment has resulted in the US$ taking a breather for a while. As the US$ has rallied what has Gold, Silver, Copper and Commodities (CRB/CRX) direction been? Not too pretty!!!
Will this set up cause the US$ to decline or will it be different this time? Could a US$ decline have a positive short-term impact on Commodities? Stay tuned!!!