Friday, June 9, 2017

Gold is Correcting

Initial Target: 1240

Gold's new high may soon be tested, and possibly even superseded somewhat, but its corrective process likely began this past week.  Surpassing the Trump Range is becoming a challenge.

A logical downside target in GLD is at that yawning mid-May breakaway gap.  The primary uptrend line will give good support around there, but, because a new high was made, this line can be broken without harm to the overall Gold Bull.  Strong support below that is at the secondary uptrend line (hashed) which was established by a hammer low on May 9th.

Dollar Confirmation

On Friday, the Dollar Index downtrend reversed at its Fibonacci Zone base.

Although the significant April 21st gap appeared to have closed on May 11th, it was not confirmed by the EUR/USD pair, which shows a significant gap at around 1.08. This gap will close, and a rise in DXY to around 100 is expected.

In a Curved Universe
the Straight Line is King!

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