This is a quick post looking at monthly charts for 6 major global currencies. There’s one common theme: non-US currencies are forming some huge bases.
EUR and GBP have been basing since 2015:
CHF has formed a giant 8-year rounded bottom. This is the currency that most closely tied with Gold.
CAD and AUD are closely tied with Copper & Oil. Both have been basing since 2015.
Finally, here’s JPY. The Yen is similar to bonds and tends to do well during risk-off periods. While it is forming a base, it looks the weakest among all.
What’s the take away? Giant bases in global currencies such as CAD, AUD, CHF are a bullish sign for commodities. However, none of the 6 charts shown above have broken out quite just yet. These are definitely some charts we want to be keeping an eye on.
Important Disclaimer: This blog is for educational purposes only. I am not a financial advisor and nothing I post is investment advice. The securities I discuss are considered highly risky so do your own due diligence.