Financial market overview
Commodities Face 14-Year Breakout Test
2022.04.29 17:26
In the commodity-currency correlation department, commodity bulls know that a strong Australian dollar is a tailwind for commodities.
Today, we look at the Equal Weight Commodity Index and the Australian Dollar Currency on monthly timeframes.
Equal Weight Commodity Index, Australian Dollar Monthly Charts
As you can see, both the commodity index (upper pain) and Aussie Dollar (lower pain) are trading in long-term falling channels. Both have shown strength over the past two years, with commodities exploding higher!
And now, these highly correlated assets are each testing upper channel breakout resistance simultaneously.
