Looking at a 20 year weekly chart of /DX weekly with the TSI (7,4) I note that the current sky high reading of 89.74 was only surpassed once - February 1997. Similar high momentum spikes were usually followed by price consolidations or brief corrections then a final gasp higher in price (see 2010, 2008, 2005 and 2000 for examples of this).
My hunch is that while the US Dollar Index has probably not yet ultimately peaked, it is only a matter of months until it does. Meanwhile, the underlying action price action in gold is going to be positive.
Looking at a 20 year weekly chart of /DX weekly with the TSI (7,4) I note that the current sky high reading of 89.74 was only surpassed once - February 1997. Similar high momentum spikes were usually followed by price consolidations or brief corrections then a final gasp higher in price (see 2010, 2008, 2005 and 2000 for examples of this).
ReplyDeleteMy hunch is that while the US Dollar Index has probably not yet ultimately peaked, it is only a matter of months until it does. Meanwhile, the underlying action price action in gold is going to be positive.