Commodity chart of the day
Daily U.S. dollar index
(Click to enlarge)
In the last 2 months there is no denying that we've appreciated in the dollar with prices approximately 4.5% above their lows reached in late April. The question is are we running on fumes and are prices destined to turn south? As one can see prices have had trouble reclaiming the 20 day MA on the daily chart above.
My take is that we see a grind lower and will get confirmation when the white trend line is breached on the way down in the coming weeks. This is not meant for a trade recommendation in the dollar but most commodities will exhibit an inverse relationship so if this assumption is correct look for a bid in other commodities. Perhaps a long trade in energies, Ag or even other crosses would be the play.
Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
