Since then, gold is up more than $100 per ounce. And the Chinese yuan (CYB) is about 4% higher.<\/p>\n
Funny thing, though… the U.S. Dollar Index ($USD) is still trading at just about the same level it was at last September. Oh sure, the buck has been a little higher and a little bit lower. But, it really hasn’t done anything for the past four months.<\/p>\n
That could change today. <\/p>\n
The daily chart of the buck looks poised to make a big move, one way or the other, following the Federal Open Market Committee (FOMC) announcement this afternoon.<\/p>\n
Take a look…<\/p>\n
![\"\"](\"https:\/\/jc-stable.s3.amazonaws.com\/ee-assets\/channels\/articles\/mm\/201901-mm\/20190130-MM-01.png\")
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After running as high as 97.20 in early December, USD has endured a series of lower highs and lower lows. The dollar has also broken below the support of its 50-day moving average (MA)<\/a> line – which shifts the intermediate-term trend to bearish. Now, all of the various moving averages are in a bearish configuration – the 9-day exponential moving average (EMA)<\/a> is below the 20-day EMA, which is below the 50-day MA.<\/p>\n The last time the chart of the dollar looked like this was last September, just before the buck dropped 3% in about two weeks. That was right about the same time gold and the yuan started to rally.<\/p>\n Notice, though, how the dollar index hit a low of about 94.70 earlier this month and has bounced back a bit since then. That bounce brought USD all the way back up to “kiss” its 50-day moving average line from below. This is a logical resistance area and a low-risk spot for traders to put on a short position and bet that the buck is headed lower.<\/p>\n If resistance holds and the dollar starts to fall, then it should make a lower low – below the 94.70 level from earlier this month. On the other hand, if the buck breaks out above its 50-day MA, then the intermediate-term trend will have changed back to bullish. Traders can close their short position for a small loss.<\/p>\n Either way, it looks to me like this chart is ready to break in one direction or the other sometime soon – perhaps following the FOMC announcement later this afternoon. Based on the recent rally in gold and the Chinese yuan – which seems to be anticipating a lower dollar – I think the odds favor the dollar bears in this scenario.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>Like I said above, I see some immediate action happening with the buck. But, the long-term market outlook is a different story…<\/p>\n As I’ve been saying the past week, I see a potential crash coming. This market crash will devastate most folks… But you don’t have to be one of them.<\/p>\n What I have to show you<\/a> could not only protect you from the coming crash but allow you to profit from it… like my subscribers did during the financial crisis in 2007-2008.<\/p>\n On Saturday, I sent out an urgent presentation with all the details… and it’s only available until tonight at midnight<\/strong>. <\/em><\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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