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 founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
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.