Commodity Chart Of The Day
Weekly U.S. Dollar Index
The dollar index has not exploded higher, but one can see from the weekly chart above that we have experienced positive price action three out of the last four weeks. I do not put this in front of you to buy dollars, but commodity traders need to pay attention to the overall sentiment in the dollar, because a number of commodities exhibit an inverse relationship to the U.S. dollar.
If prices can get above what appears to be a triple top on the chart just above current prices, we may see a trade back near 82.00 in the coming weeks. This would represent an appreciation high to low of approximately 4%. While past performance is not indicative of future results, the last time we had a similar move in the USD, crude oil corrected 20%, and gold and silver were lower by 7% and 12%, respectively... food for thought.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.