You don’t want to be short the US Dollar if….

Whenever major breakout levels are being “pushed” in the market it is important to know the ramifications “if” those levels are broken.

This week (and quite possibly today) we are probing some major levels in Gold, Silver and Copper. Most of you know the strong inverse relationship to gold/silver and the US dollar. As for copper, it has a direct correlation to global growth, so if it is going down the US dollar is probably going to get bid up on “risk aversion.”

Here are the charts, and you can draw your own conclusions:

Daily Gold triangle with key support at 1558 and weekly support at 1525

Gold Weekly bearish wedge

Silver Weekly bearish wedge

Copper Weekly support, longer term H&S pattern. 3.27 key support

GLD/UUP correlation. Like I said, you can draw your own conclusions.

 

You can follow me @PipCzar on StockTwits or Twitter

Disclaimer: I am short Silver and I am pretty sure I will be long the USD a few times today

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About Blake Morrow

Blake Morrow is the Chief Currency Strategist for Wizetrade. Blake has over 15 years of trading experience and has been a co- owner of a Dallas based brokerage firm and LiquidTrader Technologies. Currently, Blake does analysis daily for thousands on individual traders, also has appeared as a regular analyst on WizetradeTV, Traders Television and MBT Vision. Blake has also managed 6 figure trading accounts and is a seasoned individual investor in equities and FOREX.
  • http://twitter.com/PavAujla Pav

    That’s one of the cleanest correlation posts I’ve seen in a while, that’s why I’m keeping my trillion in an offshore tax haven.
    Can’t argue with the charts!
    With a few asian festivals round the corner, gold being the proverbial gift should have little or no impact on price – I just hope it breaks lower for the sake of all my friends marriages else they’ll be drowning their sorrows with liquid gold down my local pub!

    • phemysola

      @PAV never seen a comment like urs in a while lol

      • http://twitter.com/PavAujla Pav

        Phemysola, sorry for replying late – nothing like adding main street economics – I will now wind up their wive, but they expect that from me! Have a great week.