Courtesy of Chris Kimble.
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The US Dollar’s strong rally that started last July hit a resistance line, that dates back to the 1980’s, which so far looks to have stopped its strong upward progress.
Has the US$ formed a bubble? Humbly, I don’t think that is the issue. What the US$ does at this 30-year resistance line could be very important for next big move in the Euro, Pound and Aussie dollar.
Traders have accumulated a massive long position in the US$ and if it starts going against them, many would find themselves on the wrong side of this trade.
This chart was shared with members on 3/31. It reflects that the US Dollar at that time had created a reversal pattern, while hitting resistance.
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The table looks at what the US$ has done going forward, after creating a reversal pattern after a strong gain. As you can see, most times this was NOT a good time to buy and hold long the dollar.
One sector that could do well if this is an important high in the US$, is the metals complex.
If you would like to receive updated info on the metals complex on at least a weekly basis, I would be honored to have you as a member.
Metals Members info found by clicking here or below….
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