Weaker Dollar Is Lifting Commodities Higher

The U.S. Dollar Index is still the driving force behind every commodity move. This morning, the U.S. Dollar Index futures (DX H2) are trading lower by 0.53 cents to $79.69 per contract. When the U.S. Dollar Index declines it will usually mean that most every commodity will trade higher. That is certainly the case this morning as oil, copper, soybeans, wheat, rice, gold, and silver are all on the rise.

Traders can easily see the price of the iPath Dow Jones-UBS Copper Subindex Total return ETN (NYSE:JJC), SPDR Gold Shares (NYSE:GLD), and United States Oil Fund (NYSE:USO ) are all trading higher this morning. Pullbacks for these commodities are likely to occur if the U.S. Dollar Index can strengthen or bounce during the trading day. The JJC will have intra-day resistance around the $49.25, and $49.75 levels.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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