Triple Top for Gold if a Strong Move Back Up from DXY
I've posted about this for a while now, DXY is presently negatively corresponded with multiple markets: Gold, Bitcoin, Dow Jones, etc.
Should that negative correspondence continue and DXY makes a move back above 105, confirming a failed Head & Shoulders and then heads to 112 -> 118+:
- Gold may confirm a bearish triple top and lose nearly half its value.
If you zoom out to 3 month chart on DXY, the current Head/Shoulders looks more like a long term falling wedge that has broken out, re-tested the top, continued up and is now re-testing the top of a W pattern breakout.
The long-term DXY chart looks incredibly bullish. That said, it could instead drop in the interim and give Gold and other markets a chance to run to new ATHs, first.
Let's see what happens.
Should that negative correspondence continue and DXY makes a move back above 105, confirming a failed Head & Shoulders and then heads to 112 -> 118+:
- Gold may confirm a bearish triple top and lose nearly half its value.
If you zoom out to 3 month chart on DXY, the current Head/Shoulders looks more like a long term falling wedge that has broken out, re-tested the top, continued up and is now re-testing the top of a W pattern breakout.
The long-term DXY chart looks incredibly bullish. That said, it could instead drop in the interim and give Gold and other markets a chance to run to new ATHs, first.
Let's see what happens.
Comment:
Lots of reasons why DXY could just be getting started on a move up. It could drop down to 89-90 first and provide more recovery, but if it continues up - we may be in for some deep corrections:
Trade active:
If DXY remains above the shoulder, expecting gold to drop hard. Hoping to see DXY move back down to 101-102 instead.
