Dollar Bounce: $95 technical support
Lets recall the 4 major components of the Dollar Currency Index $DXY, by weight:
- Euro (EUR) – 57.6%
- Japanese Yen (JPY) – 13.6%
- Pound Sterling (GBP) – 11.9%
- Canadian Dollar (CAD) – 9.1%
Now we can see that the DXY bounce is primarily as result of Euro depreciation, relative to the US Dollar:
Now look at the Yen:
Whats Sterling doing you ask?
And the Canadian Dollar?
What any of this means I really couldn’t tell yah. I have been watching my Yellow Friend ($GOLD) for a little while now and I’m waiting to see a bearish Dollar before I can fully turn GOLD bullish.
We didn’t break $1300, that’s the level we need to beat. Looks like a possible pullback in the near term as the Dollar finds its footing.
Here’s the 4H chart:
I cant Turn fully bullish on GOLD until the Dollar pulls back. Watch to see if $1275 holds as support.