U.S. Dollar is breaking out.

Let’s take a look at the US dollar today which is breaking out to the upside. This is the US dollar Index and you could see this nice support level that’s been in effect pretty much all year with a temporary violation here. Put some more lines on the chart and see a nice down trend line broken to the upside. We have a consolidation and then a break out to the upside again arguably yesterday following through today. So the US Dollar is on the move higher.

Now let's take this in a different form in the UUP ETF. It's similar in form, of course, but you can see the support lines a little different; actually it's quite different. We do have the broken trendline, the consolidation and the breakout this week. This is just for people who wanted to track something stock related. This is the ETF for the US dollar Index. Now let’s see who's getting who's getting sold at the expense of the US dollar.

Of course, you have to start with the Euro ETF. You can see pretty much the inverse pattern - resistance level, trendline break and now it looks like a new break down here so Euro is still heading down.

Next we'll look at the British pound. This is the British pound ETF FXB and course we can see all of the fun with the BREXIT and the collapse after that. so this thing still looks pretty weak although more volatile than I'd ever care to trade.

Moving on. The Japanese yen ETF FXY. It got up to this resistance area, more or less, and turned around to head south. So this is another reason why the US currency is heading higher because it is paired with Japan, which is the second most heavily weighted currency in the dollar basket.

So the dollar looks pretty good against the world right now. Of course there are going to be some exceptions in some odd places, and we’re not even going to look at the Turkish lira, which is not part of the basket, of course.

But right now, the US dollar is heading higher and that is going to keep the pressure on gold and prevent its rally for now. I do still think gold is in a bull market but for now a little pressure on the metal as the US dollar seems to be heading higher. https://www.youtube.com/watch?v=dymJ1ffLD5c

Submitted July 20, 2016 at 10:57AM by TechnicianApp http://ift.tt/29Vs2sK