On a short-term basis, we see another re-test of the 100 level. This time, the USDX moved close to its May lows, the lower borders of the declining short-term trend channels, and the 61.8% Fibonacci retracement level.
It’s not visible on the above chart, but the major support level that was also reached today was the 2023 low.
Naturally, this support held and the USDX is now moving back up.
Let’s keep in mind that the USD Index’s outlook is primarily determined by the long-term charts that I’ve been covering recently – what we see above is just a short-term indication that the big move higher might have started here. Now, long-term charts are much more important than the short-term ones, so even if the USDX didn’t bottom here, it’s still likely to bottom soon and rally in the following weeks and months.
And the implications of those moves higher are very bearish for commodities and precious metals. The same goes for mining stocks, only to a bigger extent, if stocks decline (which is likely to happen).
Copper at a Turning Point
Speaking of commodities, copper appears to be ripe for a big move in any direction.
