Some Currencies – currently
Starting with the Australia where much of the raw material required by China is produced. Think coal, iron ore, and hey – gold too.
The Aussie made a small double bottom in October, rallied and is now retesting the bottom. It could be important for the gold bullish case that the retest holds.
$XDA – Daily
The Swiss franc is another currency that $GOLD likes for a rally buddy. The postitive RSI and MACD divergence are suggesting the possible SHS won’t happen.
$XFS – Daily
For several years the YEN seemed to be $GOLD’s twin as the two moved virtually in lockstep. Will the bromance continue?
$YEN – Daily
$USDJPY broke out of a huge consolidation triangle in July (bearish for GOLD) and did a successful retest of the breakout in August, building out a small inverse SHS pattern in the process. Today it failed a seccond retest of the small inverse SHS pattern (bullish for GOLD) Can the $YEN keep up its relative strength to the dollar?
$USDJPY -Daily candlesticks
The Chinese YUAN is the new kid on the block when it comes to $GOLD moving in lockstep with a currency. Nevertheless, it seems to be happening. There is an interesting fractal happening with the YUAN. Notice the blue rectangles – and also the positive RSI and MACD divergences.
As an aside, have a look at the $GOLD on this chart. Notice how it found resistance at R1, pulled back, and then charged right through R1 which now acted as support. The next resistance encountered was the upper trend line of the rising channel. After breaking through the rising trend line acted as support and a launching pad to break through resistance R2. If R2 holds suppost is the next resistance R# at $1290?
$CYB – Daily line chart
The EURO is the largest component in the dollar index. Here is another currency with positive RSI and MACD divergences – and a possible rounded bottom. (alright lads – no snickering at Rounded Bottom)
$XEU Dialy candlesticks
Finally – King Dollar ! Its showing negative divergences, but support (so far) on the rising trend line off the April Bottom.
$USD -Daily
Merry Christmas, Goldtent.
May God bless us, one and all!
Excellent Silver Fox
Some early signs currencies may be lining up to rally
Merry Christmas SF!
Thank you SF