January has seen a collapse in the Dollar. The monthly bear div that formed over last October and November has resolved.
Yet, we are in a confluence of horizontal and trend support. Its possible a bounce could materialize here. But...
It will be really interesting to see how DXY handles the red resistance line above. It would be textbook for price to bounce, touch this line, and then continue back down.
Aren't the markets elegant? Gold and Silver are both at major crossroads, just as the DXY is close to trendline support. For the metals, the above scenario would result in a re-test of support and continuation higher. We are in wait and see mode - to see if the downtrend red line becomes support-turned-resistance.
If February falls below the green uptrend line, the next area would be the lower purple zone - somewhere around 80-83. Reaching there may mark a major low for the Dollar, and an interesting high in the metals.
Yet, we are in a confluence of horizontal and trend support. Its possible a bounce could materialize here. But...
It will be really interesting to see how DXY handles the red resistance line above. It would be textbook for price to bounce, touch this line, and then continue back down.
Aren't the markets elegant? Gold and Silver are both at major crossroads, just as the DXY is close to trendline support. For the metals, the above scenario would result in a re-test of support and continuation higher. We are in wait and see mode - to see if the downtrend red line becomes support-turned-resistance.
If February falls below the green uptrend line, the next area would be the lower purple zone - somewhere around 80-83. Reaching there may mark a major low for the Dollar, and an interesting high in the metals.