King Dollar: Three Bearish patterns in a row

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by Chris Kimble

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 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, Silver, Copper and Miners 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-

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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!!!

 

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