USD Flashes Bearish Patterns

The USD has been on a roll the past three years, rallying more than 40% since its 2011 lows. Below takes a look at the dollar over the past couple of years.

Let me make this clear, USD’s trend remains up. The first chart shows that the dollar is trying to break above dual rising channel resistance.

USD Tries To Break Resistance

King Dollar has been on an upward roll since the lows of 2011. At the same time the dollar began pushing higher, gold, silver, copper and the miners have been hit very hard. And while the USD is testing the top of a 10-year rising channel, it’s also facing “TWO” Fibonacci levels (61% retracement of the 2001 highs/2008 lows and the 161% Fibonacci extension level of the 2008 low/2009 highs).

With King Dollar facing these three challenge points, we take a much closer look below.

Weekly USD

USD’s trend has been up over the past year (remains inside green shaded rising channel). Over the past three weeks, USD has created reversal patterns (Bearish wicks) at (1), at short-term falling resistance.

If the dollar breaks support at the 100 level (3) with momentum, sellers should come forward.

If King$ breaks strong dual support at (2), metals and miners will benefit. If the dollar breaks above dual Fib levels and the top of its 10-year rising channel, metals bulls will continue to struggle.

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