Within the commodity-currency correlation division, commodity bulls know {that a} sturdy is a tailwind for commodities.

At present, we have a look at the Equal Weight Commodity Index and the Australian Greenback Forex on month-to-month timeframes.

 Equal Weight Commodity Index, Australian Dollar Monthly Charts

Equal Weight Commodity Index, Australian Greenback Month-to-month Charts

As you’ll be able to see, each the commodity index (higher ache) and Aussie Greenback (decrease ache) are buying and selling in long-term falling channels. Each have proven energy over the previous two years, with commodities exploding larger!

And now, these extremely correlated property are every testing higher channel breakout resistance concurrently.