Several weeks back, we highlighted why the US Dollar might be due for a rally… and how this could slow the rise in precious metals prices. The greenback was deeply oversold and testing a confluence of price support.
That support can be seen in today’s updated chart as well (see green lines).
Sure enough, the Dollar put together a multi-week bounce that carried it up to the November 2017 highs before stalling out last week. That rally coincided with a pullback in precious metals prices.
Bearish Reversal Pattern?
The November 2017 highs proved to be stiff resistance for the buck – the Dollar literally stopped on a dime and reversed lower. Will this reversal mark another important “turn”?
If the US Dollar creates a short-term peak at point (1), it would send a positive message to precious metals. Stay tuned!
US Dollar “Weekly” Chart
CLICK ON CHART TO ENLARGE
This article was originally written for See It Markets.com. To view original post CLICK HERE