Dollar Bounce: $95 technical support

$DXY Bounce

Lets recall the 4 major components of the Dollar Currency Index $DXY, by weight:

1. Euro (EUR) – 57.6%
2. Japanese Yen (JPY) – 13.6%
3. Pound Sterling (GBP) – 11.9%
4. 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:

$USDEUR – Green indicates a strong US Dollar relative to Euro

Now look at the Yen:

$USDJPY – Dollar bounce against Yen, but not as pronounced as Euro

Whats Sterling doing you ask?

$USDGBP

And the Canadian Dollar?

$USDCAD – Canadian Dollar strong

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.

Here’s GOLD:

$GOLD daily candles looking a little bearish short term

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.

Cheers