Copper price takes out the SMA 50, USD holds the SMA 50
The implication of a successful break upward by copper, would be an important member of the Reflation Olympics joining the Powell relief party. The Fed, after all, did not really mean it when they jawboned against inflation (with Yellen in the side car) earlier in the summer. It is and has been ‘reflation or bust’ for our friendly inflators since March, 2020.
Anti-reflation currency USD has pulled back and is testing the SMA 50 and the neckline of a potential inverted H&S. Copper’s daily RSI and MACD look at lot better than USD’s. But still, Uncle Buck has not yet broken down, contrary to anti-USD cheerleading out there.
Boiling it down, it’s pretty simple. Copper succeeds we make munny. USD succeeds, we preserve capital until it’s time to deploy into a future liquidation.
It should be noted that the major trends are still with the reflation trades. So if copper takes back and holds the SMA 50 it will have resumed an uptrend, not started one. USD on the other has has been trying to change trend.
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