Dollar index is on the verge of a breakout

Gold and silver are trading range bound from quite some days however we have seen a slight bounce in the yellow metal today and the primary reason for that is the sell-off in the greenback which we have witnessed today. Yesterday we informed you about the possibility of the government shutdown this Friday but now It appears that the government shutdown will be avoided this Friday, However, the main focus of the market continues to be on the U.S-China trade war negotiation talk which will be held in Beijing. The precious metal sector is showing a little bit of weakness due to the recent rally we have witnessed in the greenback. The technical picture of USDX is very bullish and it seems greenback is on the verge of a breakout which will ultimately prove to be a bearish case for the yellow and the white metal(In our next analysis we will discuss the reasons That why we believe the USDX is on the verge of a breakout-EURO Weakness is definitely one of them)

OUR EXISTING POSITIONS

Currency Pair: XAGUSD ( SILVER )

Sell Stop Entry Price:16.00

Take Profit: 14.00

Stop Loss:16.100(moved stop loss)

Capital Risk:500 USD

Potential Reward: 12000USD

Risk/Reward: 1:6


Currency Pair: XAUUSD ( Gold )

Sell Stop Entry Price:1320

Take Profit: 1160

Stop Loss:1320(we will reduce the stop loss points once positions will be more favorable)

Capital Risk:0USD(amount may vary depending on your account size and risk tolerance)

Potential Reward: 18000USD

Risk/Reward: 1:9

(we can adjust (limit, close or even reverse) the position before this price level is reached)