King Dollar Creates Bearish Reversal Pattern
Chris Kimble | Jul 20, 2018 02:50PM ET
The US dollar peaked in January of 2017 and started creating a series of lower highs and lower lows, which has formed a falling channel (1).
King dollar hit a cluster of support and the bottom of the falling channel (1) 6 months ago and a counter-trend rally took place. The rally over the past 90 days has been strong, taking it back to the top of the falling channel at (2). The USD rally has been hard on gold and silver as they have experienced sharp declines.
At week's end, King Dollar looks to be creating a bearish reversal pattern at (2), which is the top of its 18-month falling channel.
If the USD breaks below 93, it would increase the odds that a short-term top is in play, which metals bulls would love to see. Investors shorting metals or looking to short metals, do not want to see the USD peaking here, they want to see a breakout of falling channel (1) at (2)
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