September is here and a new month brings new opportunities and indicators to follow.
Today, I look at the US Dollar Index, which I believe is reversing higher. And the coming strength could have implications for commodities (like Gold) and the broader equity markets.
Looking at the chart below, we can see that the US Dollar reversal triggered an ellipse buy signal this week. This is very similar to the last buy signal that occurred in July.
This “turn” higher also comes from the 50-day moving average. Additionally, stochtastics are turning up from an oversold reading. This supports a stronger US Dollar as we head into September.
We will have to see how this takes shape before understanding if the implications are short-term or perhaps longer…
US Dollar Index Chart
The author or his firm have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
