I have to break today’s EDGE Chart of the Day into two chart. First is the daily chart od the USD Index, DXY:
As you can see in the “Daily Chart” We have completed two flag patterns. But what is more important is the weekly chart:
We have rallied to major resistance (blue line) from 2005, and very close to the highs at 92.63. (overnight, the high was 92.52).
I suspect the recent run higher in the USD has run its course, or it is close to running its course. There are 3 key events at the end of the month. ECB Meeting January 22nd, Greek elections the 25th, and FOMC Meeting on the 28th. After such an amazing US Dollar bullish run, I suspect that the market could get a little choppy as we complete this major technical pattern so close to key resistance ahead of these key events.
Blake Morrow
Chief Currency Strategist
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The thing about gold is that it has been a store of value for over 2000 yrs. From Kings to pirates to Indian weddings, people are emotionally attached to it.It’s hard for the average person to comprehend that central bankers can print trillions of dollars and governments can spend trillions without any consequences. Gold makes them feel safe. Doesn’t mean it’s always smart to own it but you can see why people do.
Jokes aside (about gold) I would agree. And frankly, as an asset class that is traded in the capital markets, gold (like any other asset) will go up and down, and there will be levels, that people find value. Even if…I don’t. Great comments!
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