GOLD and DXY Gold and Dollar Index Update
DXY did come off from where it was meant to last week but
has put up more than just a fight so far in the 92.74-92.50
range. The fight back was to be expected, but it's doing
better than envisaged so far here - and these conclicting
signals urge caution now ...no interest in getting involved in a
battle of whipsaw here but will look to back the winner again
here when one emerges...DXY has gapped up today, double
bottomed and left a pin bar lying around in the space
between the two blue lines of fixed support shown on
chart...bullish signals. But it's still trapped within the
parallels which are trying to force price lower. Something has
to give here soon. ...A break above the upper parallel would
be the next bullish signal from DXY - look to get long DXY on the
next retest of the parallel from above, once broken to upside,
and get long USDEUR and short Gold on this development too.
On downside DXY has to stay under the upper parallel for the
bears to keep control from here - then they have to force DXY
down to fill the gap today at 92.89 and then push it below
92.55 again for DXY to turn negative again from here. As it
stands the bears are beginning to lose this battle, not enough
fire-power to force DXY lower from here by the look of the chart.
Early hours of this battle, still, but increasingly the bulls are
beginning to wrest back control here. Confimation will come
when the upper parallel is broken and survives the next retest.
At that point we look to short gold (if signals there are not
already given) and get long USDEUR.
DXY did come off from where it was meant to last week but
has put up more than just a fight so far in the 92.74-92.50
range. The fight back was to be expected, but it's doing
better than envisaged so far here - and these conclicting
signals urge caution now ...no interest in getting involved in a
battle of whipsaw here but will look to back the winner again
here when one emerges...DXY has gapped up today, double
bottomed and left a pin bar lying around in the space
between the two blue lines of fixed support shown on
chart...bullish signals. But it's still trapped within the
parallels which are trying to force price lower. Something has
to give here soon. ...A break above the upper parallel would
be the next bullish signal from DXY - look to get long DXY on the
next retest of the parallel from above, once broken to upside,
and get long USDEUR and short Gold on this development too.
On downside DXY has to stay under the upper parallel for the
bears to keep control from here - then they have to force DXY
down to fill the gap today at 92.89 and then push it below
92.55 again for DXY to turn negative again from here. As it
stands the bears are beginning to lose this battle, not enough
fire-power to force DXY lower from here by the look of the chart.
Early hours of this battle, still, but increasingly the bulls are
beginning to wrest back control here. Confimation will come
when the upper parallel is broken and survives the next retest.
At that point we look to short gold (if signals there are not
already given) and get long USDEUR.