The dollar has a serious problem now. It couldn't break above the 200 SMA. The ECB was late with the intervention last week so they lost every chance to weaken the EURO. Thursday is ECB rate decision. We mustn't underestimate Draghi. You never know what does he have in his bag for the market. QE3? Whatever he has he will try to weaken the Euro on Thursday. So we might have one more testback to 96 in DXY (where the 200 SMA will be) I will use it to add gold longs and DXY shorts.
Technicals Tomorrow we will tag the blue trendline or marginally break below it. Draghi will try to save the dollar though but the market will not buy his talk about the weak Euro. I think this week - most probably after Draghi's speech- we are going to break down the blue trendline. And we will be heading to the bottom of the range.
Indicators MACD is just turning down from the 0 level. Crossing down soon. RSI is far from oversold. We have weeks to fall before indicators would be oversold
Comments
mmmp12
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88$ by this year or in next ?
bertcoin
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Thanks Arpi. Looking for a place to get back in gold. Got stopped out in the bear trap and missed the run. Will watch DXY on Thursday for entry point.
Bearbud
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Hey Bertcoin, are you still in LABU and Natural Gas? Arpi hasn't commented on them in a while.
chartwatchers
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I will update today
Bearbud
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Thanks Arpi!!
bertcoin
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LABU - yes and a nice run today. (Back to even money on the latest attempt starting 8.15.16). UGAZ - no and looking if reload is near or not. Posted on Arpi's last public NGAS idea. He will get around to NGAS eventually.
bertcoin
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Just trying to link you over to NGAS, not show the chart....
zaius3333
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i think labu at this point is going to get hammered out of nowhere from time to time due to the elections.... it is an unsafe position