Sunday, September 14, 2014

King Dollar

The US Dollar continues on the tear that began in July.

The Dollar broke out of its long term base and is nearing 2013's highpoint.  A break above 85 would suggest that the next resistance level is 88.  The indys are getting pretty overbought.  A backtest of the breakout area of 84 will be in order before challenging the 2010 high.

A strong Dollar has wreaked havoc on Commodities.

 This daily chart shows the spike in the Dollar.  Commodities of all stripes are getting pummeled.  The Agricultural index, DBA, has been in a downtrend since the first bottom in the Dollar.  Oil, Gold & Copper had held up well until the July bottom.  Curiously, 10yr Treasury Notes had been a beneficiary of a stronger Dollar, until this week. 

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