The Dollar index broke through LT resistance at 97.50, signaling an advance to 100. Expect retracement to first test the new support level.
A stronger dollar is likely to weaken Gold. Spot Gold is testing the base of its descending triangle, at $1280/ounce. A false break, with recovery above $1280 this week, warns of strong support but the overall trend is bearish. Breach of $1280 would offer a target of primary support at $1180.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.