Here are my discretionary thoughts on forex and commodities. I only trade the stock market.
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- Expect a big rally in gold and silver after this short term pullback.
- A bigger USD bounce = gold and silver will reconnect with their support trendlines.
- The U.S. Dollar Index is approaching resistance.
3 am: expect a big rally in precious metals after this short term pullback.
The odds of a short term pullback in gold and silver are >50%. However, the medium-long term outlook for precious metals is decisively bullish.
The gold:silver ratio continues to bump up against 80. A ratio of 80 has matched the bottom before many gold and silver rallies.
3 am: A bigger USD bounce = gold and silver will reconnect with their support trendlines.
Gold and silver’s price action continues to be bearish. Silver is consistently weaker than gold. Coupled with the possibility of a larger-than-expected USD bounce, gold and silver will probably reconnect with their support trendlines.
3 am: the U.S. Dollar is approaching resistance.
The U.S. Dollar Index faces a lot of resistances from 90.5 (where it is today) to 91:
- Prior high in early February 2018
- 50 daily moving average.
- Previous support (now resistance) from September 2017.
I expect the USD to bounce to 92 at most. That is the U.S. Dollar’s downwards sloping trendline. A reconnect with this bearish trendline is possible.
Read Forex & commodities on February 27, 2018.
I only trade stocks. These are just my thoughts/outlook on other markets.
- Gold and silver will break above their tight range in the first half of 2018.
- I’ve decided to buy some gold and silver as long term investments.
- The U.S. Dollar is in a bear market.