The US Dollar Index retraced to test support at 79.50/80.00. Respect would confirm the primary up-trend, signaling an advance to 85.00*.
* Target calculation: 80 + ( 80 – 75 ) = 85
Spot Gold is testing resistance at $1700 and the descending trendline. Breakout would indicate that the down-trend has ended and the metal is forming a base.
Commodities also appear to be forming a base, with the CRB Commodities Index testing resistance at 315 after piercing the descending trendline. Recovery above 325 would complete a double-bottom reversal. Recovery of 63-day Twiggs Momentum above the zero line would also be a bullish sign.
