Bearish Outlook For Commodities Confirmed As US Dollar Establishes New Uptrend

As I predicted back on 26 October the US Dollar has established a new uptrend channel which signals weakness ahead for both commodities and US stocks.

The chart below shows the US Dollar Index bouncing strongly off the new wider uptrend support line (upper circle). The stochastics (lower circle) are also now in rally mode.

A rising dollar is bearish for any asset which is denominated in US dollars – which includes commodities.

Chart courtesy of StockCharts.com

 

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