USD and Silver

Uncle Buck has bounced about to the expected high (if this were to remain a bounce only).  There is a lot of resistance from the current level to around 94.50.  Weekly chart…

usd

Silver (the inflation sensitive precious metal) is not surprisingly wrestling leadership control away from gold again.  Here’s the 5 minute chart of silver…

silver

Silver has long-term resistance at 18.50, as we have been noting as the next target in NFTRH.  That resistance goes back to 2008-2010, not just the time frame indicated here…

silver.wk

It cannot be stressed enough how positive it was for silver, gold and HUI to break through their bear market shackles (for example, silver’s weekly EMA 55) but the next step is this resistance in silver.  USD looks like a real mess, so it is not a done deal that silver will correct from this resistance, but please be aware that is a clear and maybe not quite present danger.

Silver vs. Gold is the ‘inflation trade’ weather vane.  Here is the Silver-Gold ratio for perspective on that as well.

sgr

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