The US Dollar Index found support at 80 and is headed for another test of resistance at 82. Bearish divergence on Twiggs Momentum (21-day) continues to warn that the up-trend is losing impetus. Failure of primary support at 79.5 would offer an initial target of the January low at 76.5*. Breakout above 82.2 is unlikely, but would test 84*.
Gold
The weakening dollar suggests stronger gold prices. The precious metal found support at $1120 and is rallying for another test of resistance at $1160. Breakout would signal an advance to $1220*. Rising Momentum (21-day) indicates the start of an up-trend. Reversal below $1120 is unlikely, but would test support at $1080.
Crude Oil
Crude is consolidating in a narrow range between $84 and $87/barrel — a continuation pattern. Upward breakout would offer a long-term target of $96/barrel*. Reversal below the rising trendline is unlikely, but would warn of another test of primary support at $70. Momentum breakout below the rising trendline would be bearish in the short-term, but a subsequent large trough that respects the zero line would signal a primary advance.
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