MID-DAY MINUTE BY MIKE PAULENOFF: By Mike Paulenoff,
www.MPTrader.comApart from why the dollar (DXY) abruptly
reversed to the upside this morning, purely from my technical
perspective this action is what I have been awaiting: some signal
that all of the corrective-looking weakness off of the Dec 22 high
at 78.45 into the 1/13 low at 76.60 actually was a correction.
Today's strength so far has the right look of the completion of a
3-week correction within a larger, intermediate-term recovery rally
period for the DXY that is heading for a test and hurdle of 78.45
on the way to 80.00. If such a scenario is about to unfold, then
spot gold prices – as well as the SPDR Gold Shares ETF (NYSE: GLD)
-- should experience currency headwinds that could pressure prices
towards a retest of the December low at $1074, on the way to
$1050/20.
Mid Day By Paulenoff on $USD and GLD
Posted by Peridot on 15th of Jan 2010 at 01:52 pm
MID-DAY MINUTE BY MIKE PAULENOFF:
By Mike Paulenoff, www.MPTrader.comApart from why the dollar (DXY) abruptly reversed to the upside this morning, purely from my technical perspective this action is what I have been awaiting: some signal that all of the corrective-looking weakness off of the Dec 22 high at 78.45 into the 1/13 low at 76.60 actually was a correction. Today's strength so far has the right look of the completion of a 3-week correction within a larger, intermediate-term recovery rally period for the DXY that is heading for a test and hurdle of 78.45 on the way to 80.00. If such a scenario is about to unfold, then spot gold prices – as well as the SPDR Gold Shares ETF (NYSE: GLD) -- should experience currency headwinds that could pressure prices towards a retest of the December low at $1074, on the way to $1050/20.
Thanks for the update, that's
Posted by junkie on 15th of Jan 2010 at 02:20 pm
Thanks for the update, that's what I suspected: $USD broke its resistance at 77.18