The Dollar Index met strong resistance at 80.00 and is likely to re-test support at 78.00. Upward breakout would signal continuation of the primary up-trend, while failure of support would warn of reversal to a down-trend. In the longer term, breakout above 82.00 would offer a target of 86.00*. Respect of the zero line by 63-day Twiggs Momentum would reinforce the primary up-trend, while breach would indicate a primary down-trend.
* Target calculation: 82 + ( 82 – 78 ) = 86
Gold continues to test the long-term trendline at $1600/ounce. 63-Day Twiggs Momentum oscillating around the zero line highlights uncertainty. Failure of support at $1600 would warn that the decade-long up-trend is weakening, while breach of primary support at $1500 would confirm. Recovery above $1700, however, would indicate another test of $1800, suggesting the start of a new up-trend. Breakout above $1800 would confirm, offering a target of $2000/ounce*.
* Target calculation: 1800 + ( 1800 – 1600 ) = 2000; 1500 – (1800 – 1500 ) = 1200
The Gold Bugs Index, representing un-hedged gold stocks, is already in a primary down-trend, suggesting that spot prices are likely to follow. Peaks below zero on 63-day Twiggs Momentum also indicate a strong down-trend.
Spot silver is also in a primary down-trend, having encountered strong resistance at $36/ounce. A medium-term descending triangle warns of further weakness. Failure of primary support at $26 would indicate a decline to $20*.
* Target calculation: 27.50 – (35 – 27.50 ) = 20
My EW count suggest a breach of the primary support of gold at $ 1500 and most likely we would see a target of $ 1200.
Thank you for your graphs and comments on gold and silver. I am looking to buy an want to get the best price,
Brian
looking at joe hockeys report he needs to have a good look around him and his own lifestyle. The government is funded by the taxpayers and the millions they receive in retirement for the rest of their lives should be looked at as well as the corporate greed where is Robin hood when you need him the solution should not be in punishing the poor it should be in lifting them up there is a lot that could be done in every community to boost the confidence this could be in the way of progress comittees setting up free australia from debt and poverty, where all even the poorest can contribute either by craft or knitting and sewing that could be used to assist in raising revenue to donate to a fund we can all make a stand to free australia from debt it should not be up to the government alone come on you corporate money grabbers donate to your local progress association to free australia from debt a little imagination goes a long long way lets see what other suggestions people can come up with.
Good point. A culture of frugality has to start at the top.
Australia is seen to be an extremely giving country come on all you successful brokers and traders all you polititions and corporate joes lend us your hand and help get australia out of debt and more so poverty go and visit your local progress associations in the city in the country everywhere and make a difference give some guidance use your imagination do it for your country become soldiers of freedom not of war. It is great to welcome refugees but for god sake look after our own too. There is a lot of people hurting get Australia out of debt and poverty then we can truly welcome refugees into the land of the free and the brave. There is no difference between the ones at the top getting an easy ride and millions in bonuses to the ones at the bottom receiving hand outs. The true criminals are the ones at the top and the polititions who could be doing a lot more to help the ones at the bottom receive a hand up not a hand out. If they did this there would be no debt or poverty come on all you aussies go visit someone who needs a hand up and put your hand out to help. WE CAN GET AUSTRALIA OUT OF DEBT. Come on Joe open up a peoples account in every bank that we can all contribute to hey one dollar a week from all who can spare it and when were out of debt wow we could help house the homeless. Isnt this great we truly are the home of the brave and the land of the free.
If the $DXY cracks 82 it will complete a bullish cup and handle pattern, making the target 91 to 92, which would suggest the likelihood of a GFC part 2 (and make the gold target suggested by Ali plausible).
Re Hockey, if we can’t afford to maintain the welfare safety net, how come we can afford to subsidise the medical bills of the uber-rich? Get real, Joe.
The uber-rich are probably less than .01 percent of the population, while the percentage of people on welfare would be around 5 percent.