Technical Charts – Long Term Picture Of US Dollar, Crude Oil And Gold
Author Jeff Pierce from Zentrader, chart courtesy StockCharts.com
The dollar looks set to challenge 2013 highs.
Crude oil hit support with its recent move lower. I’m not convinced it will hold.
Gold is at a similar junction where the recent bottom seems too obvious.
My best guess is that in the short term we’ll see dollar strength and oil & gold weakness, or sideways action in these commodities.
I don’t see this as likely unless the bear market drags on for maybe another 3-4 years until a low is found. $700 would be the 2008 crash low approximately. a good stopping off point. However, if the triangle pattern of the last year might have a target of about $1050 with the width of the triangle being about $250 (from 1430 to 1180) and the centre being at $1300. Goldman Sachs stikes again.
Will gold continue to follow Japanese yen action?
note almost total lack of correlation positive or negative between gold and US dollar. Nobody comments on this anymore. The mantya for gold always used to be “It’s all in the dollar” – but now it is not all in the dollar, is it?
Maybe the new mantra should be “It’s all in the Yen?”
Is that a large bear flag on gold, with a second downleg to follow to approx $700?