In yesterdays post we examined the potential for gold recovering to complete a long term cup formation. While this view is highly speculative it does seem that gold is heavily oversold and should rally in the coming weeks, providing some short term relief. I also noted that the dollar was nearing the bottom of it's up trend channel and should it break down it would likely fall much further.
As of today you can clearly see that the dollar has bounced off the bottom of the up trend channel. Watch the dollar closely today, it will either recover somewhat in the face of little news, or we will get some news that will push the dollar down below the up trend channel setting it up for a significant fall.
For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.
