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The US dollar index this week has taken a decent fall, as it well & truly confirms that the bullish uptrend is over, finishing the week at just above 96. The index has now made a series of lower highs and lower lows, whilst already breaching its uptrend from Sep 18 this week. In the short term, I’m looking for a short term bounce soon as it retraces eventually to form another lower high, most likely at the 96.70 resistance, or as high as 97 given the strong move this week. In addition the US dollar index is now sitting on the lower bound of the downtrend channel.  After we see a retracement move, I’m looking to see the index to continue to make lower as it heads towards the strong support level of 95 over the medium term. If the move continues to make lower highs it will set up some strong moves ahead for Gold soon. Gold has surprised many traders & investment banks, especially those that had recently held short positions again the yellow metal. Gold’s strong move this month has certainly got the markets attention now, but the bigger moves have not even started yet for Gold. Over the next few weeks I’m expecting to see a retracement in line with a move higher in the short term for the US dollar index. Gold is in need of a consolidation on both the daily & weekly charts, with a likely move towards $1,350 level. Of course it all depends on whether Geopolitical tensions over Iran & US settle down this week.  Looking forward ahead for Gold, after we see one to few weeks of consolidation, I’m expecting big moves for Gold as its just broken out of 6+ year consolidation period on the weekly chart. At a conservative level I’m looking for Gold to at least retest its $1,900 highs made in 2001. Given the intentions of the FED now and other central banks for the remainder of 2019 & 2020 towards monetary policy, its quite foreseeable that Gold moves beyond $2,000 USD over the longer term. I have added the next few resistance levels to watch over the medium term. Join the Investing & Trading Community At Guruhaven If you enjoyed this review of US Dollar Index & Gold, that was originally posted for members at Guruhaven, you can join the community free to receive regular macro news, trading ideas, original trading content, chart reviews from Crush The Market and the Guruhaven community of traders and investors. Simply visit Guruhaven using referral code: Crush19 by http://guruhaven.com/membership If you would like to take a look at this week newsletter of some of the best posts on Guruhaven covering USDJPY, USDCHF, EURUSD, SLV, DXY and more, simply for the link http://bit.ly/GuruHaven_WNL_16 Disclaimer: Please note all information presented here at Crushthemarket.com, Guruhaven weekly newsletter and within the Guruhaven.com website and its community platform are presented for educational purposes only, and does not represent financial advice in any way. If you require financial advice please seek a licensed advisor who can provide these services.
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