We have been watching the Dollar for cues into the commodities. Recently, on one of the webinars, we discussed the turning points on the US Dollar ($USD).
Options Expiration has been an important time to expect the dollar to reverse direction in the last 9 months. 2 of the 9 were sharp turns down. So we have been rising up from the low since last Thursday. This is also when gold made its recent highs. The important observation is to make sure any directional change in the $USD is or is not affecting the commodities.
The 60-minute chart below is showing the UUP for the US Dollar, USO for oil, and GLD for gold. Oil has been drifting lower for a week, but it tried to bounce late last week. The selling started up again today.
USO has horizontal support around the $14.20 level. It is early, but we may have seen the end of the commodities recent bounce triggering at a time on the chart that it has triggered before. It looks like it is shaping up to be another turning point for the US Dollar ($USD). Stay nimble.
Join Martin Pring and for a free 1-hour webinar Tuesday at 5 pm EST. I will be the host for Martin's show. Click here to register and hear Martin's thoughts on the current state of the markets. October 20, 2015. See you there.
Good trading,
Greg Schnell, CMT
