The currency markets play an important role in the over markets… especially at the “turns”.
The US Dollar is attempting to strengthen here and the market is getting volatile and precious metals (Gold and Silver) are selling off. See what I mean?
In today’s “weekly” chart of the US Dollar, we can see that King Dollar’s sell off earlier this year came within a 7 year channel marked by each (1). We can also see that the US Dollar bounced off the lower channel support at (2) just weeks ago and reversed higher.
This reversal is beginning to get the market’s attention as the Dollar is attempting to breakout above its 2020 down-trend resistance line at (3). And as we noted earlier, Precious metals are already taking notice as volatility has pushed higher.
A breakout and further rally for the US Dollar could mess with the price of commodities! Stay tuned!
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