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Things look like they are moving to some kind of resolution on where silver is headed. The main bellwether for where silver goes is not gold but the US Dollar. The two charts below of the US Dollar Index and silver for the same time periods show how these two asset classes are moving in opposite directions. First silver, which has dropped about 15% in 19 days.

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Meanwhile, the US Dollar Index has moved up as much as 4% over the same time frame. Silver investors should keep an eye on the dollar here. The chart shows a symmetric triangle in the making as the dollar just bounced off the lower line and prompted a further silver sell off. The ABCDE is a classic Elliott wave correction pattern that often coincides with triangle formations.

The betting looks like the Dollar will revisit the top marked “E?”, at which point this multi-week rally ends. At that point the probabilities favour a renewed silver price surge.

Source: Silver and the U.S. Dollar - Moving in Opposite Directions