King Dollar has been on a roll the past three years, as it has rallied over 40% since the 2011 lows. Below takes a look at the US$ over the past couple of years.
Let me make this clear, the trend in King Dollar remains up. The first chart reflects that the Dollar (NYSEARCA:UUP) is attempting to breakout above dual rising channel resistance.
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King Dollar has been on an upward roll since the lows of 2011. At the same time the Dollar started pushing higher, Gold(NYSEARCA:GLD), Silver(NYSEARCA:SLV), Copper (NYSEARCA:JJC) and Miners(NYSEARCA:GDX) have been hit very hard! At the same time the US$ is testing the top of a 10-year rising channel, it is also facing “TWO” Fibonacci levels (61% retracement of the 2001 highs/2008 lows and the 161% Fibonacci extension level of the 2008 low/2009 highs).
With King Dollar facing these three challenge points, we take a much closer look at the Dollar below-
The trend remains up in the US$ over the past year (remains inside green shaded rising channel). Past three weeks, King$ has created reversal patterns (Bearish wicks) at (1), at short-term falling resistance.
Joe Friday Just The Facts; If the US$ breaks support at the 100 level (3) with momentum, sellers should come forward.
If King$ would break strong dual support at (2), Metals and Miners would benefit from it. Metals bulls would continue to struggle, should King$ break above dual Fib levels and the top of its 10-year rising channel. What the US$ does here friends, will impact portfolio construction going forward!!!