king dollar pic surprised

This 5-pack looks at the US$ and several currency ETF’s that seem to highly influence commodity prices

currency action week of may 6

CLICK ON CHART TO ENLARGE

Last week the US$ was testing 1-year falling support above (lower right chart), where it might have created a bullish reversal pattern (bullish wick) at this support line. Let me make this clear, I am NOT saying that one week’s price action in the US$ makes a trend.

On the flip side, the Aussie$ (FXA), Canadian$ (FXC), Euro (FXE) and the Franc (FXF), might have created bearish reversal patterns (bearish wicks) at falling resistance lines (at the red arrows).

Commodities remain in a down trend over the past few years (lower highs and lower lows). What these “commodity sensitive currencies” do at falling resistance, will have a big impact on whether commodities┬ácan breakout of this trend over lower highs and lower lows. What King Dollar does at support, could have a big impact on Gold, Silver and Copper in the near future.

What FXA, FXC, FXF, FXE do at falling resistance, should give us a big clue to where commodities might be a couple of months from now. If they breakout, the CRB index could do well. In some ways, the world might “hope” these currencies breakout, to keep global deflation at bay.

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past