Loading ...A quick look at the Euro and the Dollar
Both currencies built out a pointy wedge, the dollar pointing up, the Euro down.
Today both currencies broke out in their trend direction.
The dollar easily broke through resistance trend lines so far, as well as the 200 DMA, but it is getting long in its daily cycle.
Gold does rally with a rising Dollar sometimes. I don’t know if this will be one of those times.
$USD – Daily
EDIT – Add $USD Weekly (longer tern view)
$XEU – Daily
$XEU – Daily line chart (a longer point of view)
Thanks Foxy
Breaking out of a wedge which is pointing up is a bullish even a la Rambus Chartology Principles
Batten Down the hatches if this takes off here like It appears to be doing…Yikes
I agree, Sir Fully. From what I understand near everybody was short the Dollar. Everybody is/was long commodities for the inflation trade.
Now Dollar short positions are being squeezed and need to cover. A hedge fund blew up over the weekend. Not sure of details. Van Meter says it was margin calls that did them in. A fast rising dollar is deflationary and will knock the legs out from under dollar bears and commodity bulls. Tech stocks too.
There is a possibility this could get ugly until the Fed steps in with yield curve control. When that happens the PMs will react first, I think.
Not too sure how this affects Commodities
Gold …yes…under pressure
Commodities like Steel and Concrete and Food have This Tail Wind from the proposed Infrastructure Build out that the astute Sir Highroller has been talking about.
Big Cross Currents here… Deflationary pressure from a Strong Dollar and inflationary Pressure from Mega trillions in Stimulus…Rambus is Bullish on the US Markets
Crazy Times …must keep eyes wide open. Thanks again for noticing this important breakout in the Dollar…pass the Popcorn
china man has been buying us $ to piss them off in a currency war. Nobody likes a high currency for trade.