Precious Metals Bulls Cheering On U.S. Dollar Weakness!

Two of the world’s most-watched currencies appear to be headed toward a major inflection point… and precious metals bulls should be tuned in!

It’s the end of the week, and that means Joe Friday is ready to deliver “… Just the facts”.

Today’s chart 2-pack highlights the past 20+ years of action on the U.S. Dollar and Euro currencies. As you can see, the U.S. Dollar has been in an up-trend for the past 13 years while the Euro has been in a downtrend.

But these trend-in-motion are facing big tests this month! The Dollar is testing a confluence of major support at its prior lows and channel support at (1). This is occurring while the Euro tests its prior highs and upper channel resistance.

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A U.S. Dollar breakdown would effect several markets…

But perhaps none more important than precious metals. Weakness in the U.S. dollar is a bullish tailwind for Gold and silver prices.

And considering that Gold and Silver are trading just off there highs and both have been forming a broad multi-month consolidation pattern, this could all be coming to a head this summer.

Will precious metals embark on another big rally in 2021? Or will they continue to consolidate / pull back. Keep an eye on the U.S. Dollar. Stay tuned!!

U.S. Dollar versus Euro Currency Chart – “monthly”

us dollar weakness versus euro bearish currency analysis june 11 news image

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.