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Gold & Commodities

The Gold & Commodities category is a sub-section of Market Analysis that includes charts and commentary associated with precious & industrial metals such as gold, silver, and copper as well as various hard & soft commodities such as oil, gas, wheat, corn, etc…

Feb 122016

Following the recent whipsaw/false breakdown, the EUR/USD has made a solid breakdown confirmed by more than just a few candlesticks, as with the previous breakout. This breakout also occurred in the "sweet spot" where most wedge breakdowns typically occur (about 65-80% towards the apex of the wedge).

With the Euro representing a whopping 57.6% of the US Dollar index, should this scenario play out in the coming days, GLD & GDX are likely to move substantially lower as a gold generally moves inversely to the $USD. Also note that the US Dollar & US Equities have shown a strong direct correlation in recent years. Hence, should the $USD rally in the coming days, that would likely lift equity prices, further exacerbating an unwinding of the recent flight-to-safety bid that gold & GDX have benefited from. EUR/USD 60-minute chart:

EUR-USD 60-minute Feb 12th

EUR-USD 60-minute Feb 12th

Feb 102016

This EUR/USD bearish rising wedge breakdown + break of horizontal support is likely to bring the pair down to the 1.11ish target zone. Gray horizontal lines are minor support levels, any of which may produce a temporary reaction. Should the EUR/USD fall much below the [continue reading…]

 February 10, 2016 10:29 am  Forex (Currencies), Gold & Commodities Tagged with: , , , , , ,  No Responses »