King Dollar strength over the past 5-years, has helped crush commodities. Is a breakout by King Dollar about to happen and keep putting the Crush on Commodities?
Below looks at the US Dollar pattern over the past 20-Years
CLICK ON CHART TO ENLARGE
US$ started moving higher in 2011 and commodities then did the opposite, falling hard, enduring a historic decline over the past few years.
Now the US$ is back testing “weekly closing highs” at (1), which have taken place, just below its 61% Fibonacci retracement level, based upon the 2002 highs and 2008 lows.
If this would be a triple top and the US$ would happen to break down, commodities would love it.
If the US$ succeeds in a breakout above triple resistance and its 61% Fibonacci retracement level, commodities continue to get crushed.
What King Dollar does at the 100-102 level, will be very important to commodities and multi-national companies in the states.
