Die Hard
The Dollar is Still in Bullish Mode here …FWIW (Chart based on Rambus View)
Shows a perfect parallel Flag after a strong impulse move up
Then the breakout and now a clear pattern straddling the top line
These usually resolve bullish .
Graddhy has some great charts showing this will be a false breakout and will resolve bearish.
Critical here for PMs.
Pass the Vodka
On the Other Hand the Dollar vs Yen has clearly broken down and is in the thin zone and is now backtesting the break down.(Gold Bullish) This is a bearish set up ! AND Gold is tracking …precisely…this Dollar Yen chart more so than the Dollar Index Chart ( which is more a Euro centric chart)
These two charts are rarely this out of synch…somethings gotta give
Fx options expires 10am NY time. After that gold goes higher and I bet tmr it closes on above 200 DMA though the downtrend isn’t broken.
Headline this morning that Trump is looking at ways to penalize currency manipulators. USDJPY got whacked a bit on that. Reinforces the narrative though – Trump admin wants WEAK USD. Maybe that’ll have some influence on the outcome of this situation.
It seems like we have a critical juncture every week, looking as last 2 months highs will not be broken thus far. Debt ceiling drama next???