- As you can see, the US Dollar rallied right through overhead resistance at the 50% Fibonacci retracement of its big decline.
- It's now trading at its high for a year.
- It will likely test the 82.70 area. And it could go higher from there.
- Momentum is not only bullish, it is strengthening.
The dollar seems to be driven by a 1-2-3 of weak Europe, strong U.S., and the general feeling that the U.S. Federal Reserve will start hiking interest rates sooner rather than later.
Naturally, a bullish dollar is weighing on gold and miners.
I recommended that Gold & Resource Trader subscribers take some mining gains recently. I probably should have recommended taking more off the table. However, gold buying is starting to pick up again, probably driven by India.
So gold and miners could do well despite a dollar rally. After all, we are entering a season that is typically good for the precious metals.
We'll see. And we'll also see if Mighty Greenback bumps its head and heads lower.
Have a good weekend.