As can be seen in Part 1, when are measured against the US Dollar , the price ratio (DBC/UUP) failed to move higher in recent sessions, and is struggling to re-test its 20-Day (Green) and 50-Day (Blue). Moreover, in the chart above, a similar pattern emerges when are compared against US Treasuries. The price ratio between and US Treasuries (DBC/IEF) moved higher since early 2019, but failed to break higher above its 50-Day and is also struggling to clear this important hurdle.
It seems that are at a crossroads at the moment, in that the asset class is trying to break its 50-Day EMAs against the US Dollar and US Treasuries respectively. If can break through these levels, expect the asset class to move higher in the short-term. If not, or if global economic indicators do not improve over the next few weeks, expect more downside in the near future.