UDN
Dollar and Precious Metals at Key Turning PointsDollar index is testing its lower support channel and could have a strong bounce, which in turn would send precious metals tumbling. Gold miners are looking bearish on the daily chart and I expect a move lower this week. See more videos at www.TheTechnicalTraders.com
4-hour and weekly chart US Dollar analysis and forecastThe US dollar has had its pre and post Brexit price swings. As shown on the 4 hours portion of the chart money moved into the dollar, and post-Brexit failure money is now moving out. Price swings based on the news are almost ALWAYS given back within a few days and we see that happening once again.
US Dollar is the up bounce over?In February I suggest a bounce was likely coming in the US Dollar DXY (see link below). The DXY is not at the center line of the weekly channel and almost to the Fib target area I had. There is now a bearish divergence in the daily RSI. I think it is like the dollar is about to have a longer to term decline starting soon.
I have closed my shorts on gold as a fall in the dollar tends to support gold and because of the way the gold futures chart looks to me. If I am correct I hope this was helpful. Take care. Have a great weekend.
Update on my view of the dollar. We have just completed what may be a final triangle which has resulted in a thrust up the last few days. The thrust finished with a bearish flag. This still fits with the longer term chart I previously posted. We have to see if the current top from the last couple of days is taken out or (e) (approx) 94 is taken out to see if the correction is over. If interested the bearish ETF for the us dollar is UDN.