Tuesday, May 26, 2020

"King Dollar Be Could Double Topping..."

Mr. Kimble's headline continues "...Commodities Would Benefit If It Does!" but he is using a shorthand for "Would benefit in dollar terms" because if the dollar is weakening some other currency elsewhere is strengthening and hence commodities in those terms are getting cheaper, what's your numéraire?
From Kimble Charting Solutions, May 26:

https://kimblechartingsolutions.com/wp-content/uploads/2020/05/king-dollar-could-be-double-topping-at-2017-highs-may-26-1.jpg
The U.S. Dollar has been a pillar of strength for the past 12-years, at it created higher lows starting in 2008, near the 70 level. Since these lows, it has rallied nearly 50%.
The 102 level was resistance for nearly 13-years (1987 to 2000) until an upside breakout took place....
....MORE

Spot DXY 99.0510 down 0.8120 (-0.81%)