USD is weaker due to a new tariff on steel and heightened geopolitical issues.
The biggest victim was silver with a huge jump in price.
So why is USD so weak now?
Well, the new US budget currently stuck in Congress could add $4 trillion to the debt, crazy unexpected new tariffs like the new 50% on steel, failing trade talks with China, and a weak ISM manufacturing number.
Should we expect a reversal?
If you believe in the TACO trade, then watch the news for a reversal in attitude at the White House and the corresponding reversal in USD.
If we move out to the daily chart on silver, we see that price action reached a key level of resistance.
Gold went through the same movement and, as a safe haven, should continue heading up.
But we will wait for a technical pullback to our trend channel and with our indicators.
We saw similar movement on USD currency pairs like NZDUSD and we will wait for a retracement here, as well, to trade with the trend.
You will find a similar situation with AUDUSD.
Price action on WTI opened on Monday with a gap and broke out of the descending triangle with the weaker dollar.
Watch your technicals and, more importantly, the news, as geopolitical and political events will affect the price of crude.
