You need to be paying close attention to the Dollar. We have some history written right on the chart if we'll just take a moment to interpret it. My interpretation might be different than yours but that's why we share our ideas.. and it would be a boring world if we all thought the same way. I don't watch the Dollar very often but I see very obvious price cycles on multiple levels going on here. There appears to be a potential larger cycle low that will begin pulling down on the Dollar over the next 7-8 years. However, the Dollar could be bottoming in the near term on a smaller cycle. I think it has the potential to rally back up to the upper trend (just like 1999-2002) before the long drop. Notice the symmetrical triangle and where the measured move is pointing to- I can't say if that target has been reached yet or if it's even valid but the measured move is near that upper trend. It'll be interesting to see if the Dollar can make that climb one more time (107-111?) before the likely descent. It'll also be interesting to see how precious metals respond if the Dollar does manage to rally again.. I would be thrilled to see another discount in the metals but there's a chance that the best discount is now.. There's no promise of lower prices in Gold & Silver again with what we're witnessing today.
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I should have used THIS dxy chart that goes back past the 80's. The cycles do not change but the trend is technically not valid.. This can change my entire interpretation.
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GOLD - very interesting to me- obviously price has consolidated a little but is this a pennant that represents a half-way mark? The sine/price cycle shows that a low in gold was due in this zone.. this pattern can be a top and represent a trend change or just the LOW of this cycle with a much bigger move coming... The dollar bottoming should make things interesting for metals and the markets... exciting times
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A good technical analysis on the dollar is critical. I've never realized over the years how much it could help me with my other analysis' on the market until recently. These key pivots or trends are vital for investors and traders to shape their whole view properly.