UUP has already broken above the W and/or Adam and Eve pattern here, and may indicate that DXY is about to do the same in preparation for a move back to 112 and then to 118+: UDN could also become bullish however, indicating the opposite, so keep an eye on both:
BMO Asia Investment Grade Bond ETF 3141. HK vs. BND , EURUSD , UDN and Hang Seng Index - on separate scales
BMO Asia Investment Grade Bond ETF 3141.HK vs. BND, EURUSD, UDN and Hang Seng Index
Dollar 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
The 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.
The chart is self-explanatory but in short, if the dollar's pullback here is what it looks like then expect a strong dollar rally and for resources to correct. There is more about what should happen with gold in a recent blog post .
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...
UDN Stocastics Trending Down Color Magenta Number 3
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...