This is an interesting chart how the EurUsd and gold is moving together.
Usually I'm watching the DXY- Gold chart but as now the main story is the upcoming Brexit event it's better to focus on EurUsd. In the past there were many times disunite events in these 2 wehicles history. I will post a few a bit later.
I highlighted by a red rectangle where gold was decoupled from the EurUsd and highlighted by green when they met again.
Check out chart history how gold and EurUsd is moving together. If there was a disunite event there was always a very fast reunion period when they've found each other again
It's hard to predict what and how will happen in the following 2 weeks (FOMC, Brexit) but one thing is sure :
EurUsd and Gold will meet up again on this chart. This divergence had not been lasting for long in the past.
Brexit is still far away so I'm convinced that gold will be the one who will have to run after EurUsd as EurUsd has weeks to fall in the new EU panic.
Few things I noticed:
1. Volume. Far below average. I'm sure that retail is ready for the bounce as they are on board.
Smartmoney was not buying .
2. COT: last time when blees were 22 (2015.Oct) we had a 150$ decline.
With this blees rating don't want price to run up to 1400$ in a week or two...
3. Miners. What happened to miners? We broke out from the flag . Where is the follow through with the gold rally?
Smartmoney was clearly selling off miners and holding up gold price to get rid of the mining shares
4. Very high volume in NUGT on Friday and 2nd largest volume in DUST in its history .
Does smartmoney know something about the FOMC meeting next week? Is that the reason that they were selling miners while gold was up?
Usually I'm watching the DXY- Gold chart but as now the main story is the upcoming Brexit event it's better to focus on EurUsd. In the past there were many times disunite events in these 2 wehicles history. I will post a few a bit later.
I highlighted by a red rectangle where gold was decoupled from the EurUsd and highlighted by green when they met again.
Check out chart history how gold and EurUsd is moving together. If there was a disunite event there was always a very fast reunion period when they've found each other again
It's hard to predict what and how will happen in the following 2 weeks (FOMC, Brexit) but one thing is sure :
EurUsd and Gold will meet up again on this chart. This divergence had not been lasting for long in the past.
Brexit is still far away so I'm convinced that gold will be the one who will have to run after EurUsd as EurUsd has weeks to fall in the new EU panic.
Few things I noticed:
1. Volume. Far below average. I'm sure that retail is ready for the bounce as they are on board.
Smartmoney was not buying .
2. COT: last time when blees were 22 (2015.Oct) we had a 150$ decline.
With this blees rating don't want price to run up to 1400$ in a week or two...
3. Miners. What happened to miners? We broke out from the flag . Where is the follow through with the gold rally?
Smartmoney was clearly selling off miners and holding up gold price to get rid of the mining shares
4. Very high volume in NUGT on Friday and 2nd largest volume in DUST in its history .
Does smartmoney know something about the FOMC meeting next week? Is that the reason that they were selling miners while gold was up?
Comment:
Wash. Rinse. Repeat.
Comment:
When we break the lower trendline of the wedge the party is starting.