US Dollar up?
US Dollar is on the verge of breaking up. At least in my opinion. And I think the upcoming move will be a big one. Gold and silver will probably get crushed. As you can see in the March Dollar index (DXH13) future daily chart the dollar is completing a bullish wedge pattern:
Maybe the dollar won’t make the breakout immediately but I think eventually it will. Here is DX continuous chart showing a major support line:
Well, nothing is sure in the end. You can interpret the chart above also as head and shoulders pattern. It’s possible. But I think most likely we will see an uptrend in the dollar. Next comes long term continuous DX chart:
I think (and it’s pure guess) dollar index can get to somewhere below 90…maybe 87 – 88. This would mark the last dip in gold and silver prices after which next major upleg in precious metals will take place. It will be fueled by inflation propagating into economy from Fed’s monetization actions in last few years. At least if I’m not wrong. We’ll see.