Quite a bit has been made of the dollar rally recently and its contribution to the demise of commodities over the last several weeks, so I wanted to put up a 10 year chart of the US Dollar Index to get an idea of just how far the US dollar may rally before pulling back, which could be the catalyst for a furious snap back rally in commodities.<\/p>\n
As I’ve said to members a couple weeks ago, I think the major bull run in commodities is in great jeopardy and I’d be selling into a major rally, but in the shorter term there is going to be tremendous profit potential across gold, oil, coal, etc. We’re seeing some of that today which could be the beginning. <\/p>\n
Look at the major downtrend of the dollar and the spike over the last month. This rally is nearly vertical and the largest in 3 years. If you believe that the dollar is going to be able to sustain this kind of move and blow through major resistance of a 6 year downtrend, then keep shorting commodities. If you believe the dollar will fail at this line of resistance, at least for a few weeks then place your bets! <\/p>\n
Quite a bit has been made of the dollar rally recently and its contribution to the demise of commodities over the last several weeks, so I wanted to put up a 10 year chart of the US Dollar Index to get an idea of just how far the US dollar may rally before pulling back, … Continue reading US Dollar Closing In On Major Resistance, Expect Commodities Snap Back Rally<\/span> ![\"us_dollar_chart813\"](\"http:\/\/selfinvestors.com\/tradingstocks\/wp-content\/uploads\/2008\/08\/us_dollar_chart813.gif\")
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