Commodities Bulls Hope U.S. Dollar Peaks Here
Chris Kimble | Apr 06, 2021 05:10PM ET
The U.S. dollar has received a fair amount of attention over the past year, as pandemic-spurred government stimulus and assistance programs, and a softer stance from the Federal Reserve have weakened the buck.
And commodity bulls have benefited enjoying a broad rally over the past 12-18 months.
But not all is lost for King Dollar. And commodity bulls need to pay attention.
Looking at today’s long-term “monthly” chart, we can see that the U.S. dollar has been in a long-term rising trend marked by each (1). King Dollar recently bounced off the lower rising trendline and is now testing its short-term falling channel resistance at (2).
What the buck does here is important. Commodity bulls are hoping for a peak and turn lower from here. On the other hand, a breakout would signal a strengthening dollar and an emerging headwind for commodities.
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