JoeFridaydollarseasonalpatternjan2

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When it comes to currency strength, King Dollar had a pretty good 2014! Speaking of strength, the US$ ETF (UUP)/Euro ETF (FXE) performance spread between the two, has been 23% over the past 6 months. (See spread here)  

The above chart, from Sentiment Trader, highlights that the US$ is now entering its strongest seasonal month of the year and its strongest 90-day window of the year too. 

As the US$ is entering its strongest seasonal month of the year, the chart below reflects that it is nearing a 10-year resistance line, as 87% of investors are bullish the US$ right now. 

dollar10yrresgoldcrude1oyrsupportjan2

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The above chart reflects that the US$ has rallied for the past three years and Crude & Gold have done the opposite.

All three are testing 10-year support/resistance lines, at the same time. This is the time of year that many predict or are ask to predict what they think will happen in the upcoming year. I will let Joe do the talking today.

Joe Friday, just the facts Ma’am…The US$ is now entering its strongest seasonal month of the year. What the US$ does at the 10-year resistance line should tell investors a ton in regards to if support will hold or fail in both Crude & Gold!

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