The US Dollar Index broke resistance at 80 on the Weekly chart, signaling an advance to 82. The Index is already in a primary up-trend, as indicated by 63-day Twiggs Momentum above zero. Breakout above 82 would offer a target of 86*.
* Target calculation: 82 + ( 82 – 78 ) = 86
Spot Gold followed through below last week’s low, indicating a correction to test primary support at 1500. Respect of the long-term rising trendline would indicate the primary up-trend is intact, but reversal of 63-day Twiggs Momentum below zero for a second time warns of a down-trend. Target for a down-trend would be 1200 to 1400*.
* Target calculation: 1600 – ( 1800 – 1600 ) = 1400
The Hourly chart shows short-term support at 1635 and resistance at 1650. Failure of support would test 1600, while upward breakout from the trend channel would signal retracement to test the new resistance level.
If too many people believe the artificially generated Support and resistance line on a random graph then they become self fulfilling. Another example of religious belief in the face of reality. The US $ is screwed up, the Chinese know it, I know it and a lot of other intelligent thinkers know it.
What you, I or the Chinese believe is irrelevant. It is what the market believes that counts.
The gold and silver markets are rigged so they are not clean markets. My comments on lines on “random action” charts are more true for a rigged market than you will probably acknowledge! If you doubt that they are rigged then check out current legal action on the matter in the USA
With the current scale of central bank intervention, what markets are not rigged? Suppression of the yield curve affects all asset classes.