The dollar has a serious problem now. It couldn't break above the 200 SMA.
The ECB was late with the intervention last week so they lost every chance to weaken the EURO.
Thursday is ECB rate decision. We mustn't underestimate Draghi. You never know what does he have in his bag for the market. QE3? Whatever he has he will try to weaken the Euro on Thursday.
So we might have one more testback to 96 in DXY (where the 200 SMA will be)
I will use it to add gold longs and DXY shorts.
Technicals
Tomorrow we will tag the blue trendline or marginally break below it. Draghi will try to save the dollar though but the market will not buy his talk about the weak Euro.
I think this week - most probably after Draghi's speech- we are going to break down the blue trendline.
And we will be heading to the bottom of the range.
Indicators
MACD is just turning down from the 0 level. Crossing down soon.
RSI is far from oversold.
We have weeks to fall before indicators would be oversold
The ECB was late with the intervention last week so they lost every chance to weaken the EURO.
Thursday is ECB rate decision. We mustn't underestimate Draghi. You never know what does he have in his bag for the market. QE3? Whatever he has he will try to weaken the Euro on Thursday.
So we might have one more testback to 96 in DXY (where the 200 SMA will be)
I will use it to add gold longs and DXY shorts.
Technicals
Tomorrow we will tag the blue trendline or marginally break below it. Draghi will try to save the dollar though but the market will not buy his talk about the weak Euro.
I think this week - most probably after Draghi's speech- we are going to break down the blue trendline.
And we will be heading to the bottom of the range.
Indicators
MACD is just turning down from the 0 level. Crossing down soon.
RSI is far from oversold.
We have weeks to fall before indicators would be oversold