US Dollar Falls Below Uptrend. What Happens Next? #Gold #Oil

The US Dollar Index, as tracked by the PowerShares DB US Dollar Index Bullish Fund, has fallen below its short-term uptrend. This is because the market realized over the weekend that the Fed has plenty of breathing room on raising interest rates. This, in turn, is due to recent weak economic data.


(Updated chart)

You can see the dollar's weakness is putting a bid in gold. Crude oil is up more than 5% today, and is threatening the high it put in the week before last.

If the US dollar doesn't recover soon, then the short-term uptrend in broken. It still has longer-term support, but we'll how that plays out.