In a world where the US Dollar still makes the world go round, it’s vitally important that investors pay attention to potential pivot points for the buck.
There’s a reason why we call it King Dollar!
When it is weakening, we often see a tailwind for gold and other commodities and sometimes stocks and bonds. And when strong, the opposite.
Lately we have seen a stronger Dollar that’s rising with interest rates (and that’s hurt bonds). BUT that could be coming to a halt.
Today we look at a “weekly” chart of King Dollar to highlight a critical inflection point for this market mothership! As you can see King Dollar’s 6-week rally is facing what might be a 800 pound inflection point at (1). Triple resistance!
Time to head lower? Or breakout higher? In my humble opinion, what happens here will be important for many assets. Especially Gold and Bonds. Stay tuned!
US Dollar “weekly” Chart
Twitter: @KimbleCharting
The author may have a position in mentioned securities. 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.
