The currency markets could be setting up for a big move.
And this could have big time effects on the other markets, like precious metals.
It all starts with the US Dollar (CURRENCY:USD).
Below is a long-term chart of the US Dollar vs the Euro. At point (1) we have a potential inverted head and shoulders pattern (bullish) for the US Dollar and at point (2) a potential head and shoulders pattern (bearish) for the Euro.
Note the confluence of support (Dollar) and resistance (Euro).
A strong dollar typically isn’t a good thing for commodities… and especially precious metals like Gold and Silver. Precious metals bulls have their fingers crossed that the US Dollar doesn’t break out above the neckline at point 1… or the Euro below the neck line at point 2. Stay tuned!
U.S. Dollar vs Euro – Long Term Chart
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