Originally published by Chamber of Merchants
Let’s objectively look at the US dollar… forget about what you’re invested in…
Let’s look at the US dollar on its own…. From the graph below…one can see that it is resting right on support…
If the US dollar breaks through this support then gold in US dollars will rocket up to $1240 I expect….
Let’s look at the RSI on the US dollar to see what past support areas have revealed. The US dollar, when meeting support, often bounces when hitting the oversold arena on the RSI.
The Cloud Balance chart shows the dollar is still bullish and that .99 is roughly the reversal level, if not sooner.
So, looking at the US dollar…. I believe there’s a strong case for a strong bounce.
Definite? No.
Of course not… But high probability that even if we get a dip, it may be followed by a strong reversal. (And the opposite for everything else)
Falling through the 99 level will cause a major surge in all things commodity and precious metals related.
Which is what the obvious trade is right now.
However, the signs and logic point me towards another leg up in the US dollar … barring a Trump tweet of course.