The Dollar Index is advancing strongly, headed for a test of the 2012 high at 84*. Recovery of 63-day Twiggs Momentum above zero suggests a primary up-trend. Retracement to test the new support level at 81.50 remains likely.
* Target calculation: 81.5 + ( 81.5 – 79 ) = 84
Gold has fallen as a result of dollar strength, testing primary support at $1550. Support between $1500 and $1550 remains strong, however, and we are unlikely to see a breakout below this level.
