We all know that the commodities have broken their primary down trend and are now in a bull trend. However, are they in a bull trend in AUD, CAD, EUR, or even JPY terms? We believe that a “true” bull market in commodities should be in defined as strength in either USD or Non USD terms. Let’s look at our favorite commodity ETF “DBC” in other currency terms:
The charts above suggest to us that DBC (commodities) are in a bottom formation relative to non-USD currencies. We are confident that DBC will break higher against the CAD, AUD, EUR, and Yen over the coming days. This will be the final piece of that bullish commodity jigsaw puzzle that we have been looking for.
