Gold & silver are holding firm, at least so far today – in the face of a big up-day for the USD.  It appears that gold & silver may suspect that the USD is in the latter stages of topping, having been on a relentless tear since the beginning of May this year.

As I posted earlier this week – having printed a lower-high double top, followed by a lower-low bottom in May, the USD remains in a bearish structure, and continues to trade within a bearish rising flag.  The top rail of the bearish flag is presently situated at about $99.75, which also corresponds to overhead horizontal resistance.

usd-daily

The USD topped earlier this week on Tues, at a high of $99.09.  So far today, the high reached $99.005.  Of course – there is no law that mandates every chart formation to be perfectly “symmetrical”, ordaining that the USD must touch the upper rail before potentially reversing course.

In the USDU daily chart below, we can observe that the USD complex is already bumping up against short term trendline resistance, with negative divergence developing.

Therefore, I suspect that if today is not the top for the USD, that the upside potential from here – before a reversal occurs – is limited.

usdu-daily