When is comes to cause and effect, the U.S. Dollar seems to be having a profound impact on commodities over the past three years.

This 5-pack takes a look at the U.S. Dollar and a few key commodities. The upper left chart reflects that the US$ hit a low in 2011 and has rallied the past three years. What assets have been most impacted by the rally in the US$?

As you can see above – Gold, Silver, TR Commodity Index and Crude Oil have all been impacted by the strength in the US$ over the past three years.

Below takes a look at King Dollar and the Euro over the past six years



As you can see the Dollar and Euro are now at the same prices as six years ago, as both are inside of sideways trading channels, each facing key resistance/support channels, with sentiment near extremes.

One guarantee….Sideways channels have to come to an end some time! Is now that time? If you are long commodities or wish to go long them, you DO NOT want the US$ to break to the upside of this pattern! 

If you like commodities and extremes, you might want to check out our Sector/Commodity Sentiment Extremes reports and see how the Power of the Pattern is helping members understand that the largest head & shoulders top in my 34-years in the business looks to be in play and how you can take advantage of it.

See our website…..Here

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