Here are my discretionary thoughts on forex and commodities. I only trade the stock market.
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- U.S. Dollar is at the top of this range. A breakout will = a bigger rally.
- A USD breakout will = a medium term gold and silver breakdown.
- Oil’s price action is more bullish than that of gold and silver.
1 am: U.S. Dollar is at the top of this range. A breakout will = a bigger rally.
The USD Index is currently at the top of its range (resistance). So far this resistance is holding. But should it breakout from this range, the USD’s bounce will go much higher.
The USD Index is also at trendline resistance. This is a big resistance. It’s decision making time.
1 am: A USD breakout will = a medium term gold and silver breakdown.
The inverse correlation between the USD and gold/silver is very strong right now. As expected, gold and silver were capped at trendline resistances and reversed downwards yesterday. If the USD breakouts above its multiple resistances, then gold and silver will make a medium term breakdown below their support levels.
1 am: Oil’s price action is more bullish than that of gold and silver.
Whereas gold and silver fell because the USD Index went up yesterday, oil did not fall at all. This is a sign of bullish price action and suggests that oil’s rally will continue. Oil has gotten rid of its inverse correlation with the USD Index.
Read Forex & commodities on April 23, 2018: outlook
I only trade stocks. These are just my thoughts/outlook on other markets.
- Gold and silver are in bull markets.
- I’ve decided to buy some gold and silver as long term investments.
- The U.S. Dollar is in a bear market.