The Greenback is Still Hanging on, and That Makes Things Messy

Around the same time the U.S. Dollar ETF, UUP, made it clear it would not relinquish its opening gains this morning after the first hour of trading or so, gold miners faded to red virtually across the board. Moreover, equities as a whole are coming in and at sessions lows as I write this, while UUP pushes session highs. 

Now, the inverse correlation between the greenback and stocks may not be as pronounced as the one with miners. But the Dollar strength sure seems to be making things messy, especially when many had looked at the same chart we are, below on the UUP daily timeframe, and assumed the fifteen-month support breakdown (lower light blue lines) would imply an immediate further slide. 

Typically, as we have noted before, there is a mighty struggle, even if the eventual path is lower--And this would logically seem to apply to the world's reverse currency. 

But into this Dollar bounce, it is all the more impressive to see many soft commodities ignoring a sharp giveback after a strong rally, keying off the DBA ETF. 

The bottom line is that King Dollar is still not likely to go down without a fight. And as tempting as it may be to press miner longs here, many of then are reversing into extended conditions today amid the greenback's bounce.