The US dollar has made a major breakthrough these past few days.
Although we anticipated sideways movement for some time before a surge, the surge has come early.
The 50 day EMA of 75.83 has been broken.
The 75 day EMA of 76.34 has been breached.
The momentum has now changed to bullish and the 200 day EMA of 78.43 is not far away.
This is majorly bearish news for crude oil and commodities.
We anticipate $50 crude is possible in the medium term as the market becomes aware that the recovery is rolling over and demand will soften.
It is somewhat bearish news for gold and silver.
We anticipate a pull back to the $1000 to $1050 level for gold. We expect that the 200 day MA of $980 will hold fast as Central Banks continue their purchases.
In our view, this could represent the best buying opportunity in months.