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Intermediate-Term Technical Picture of US Dollar and Gold
 
Tuesday, January 10, 2017

U.S. Dollar – Bump and Run Reversal Top Pattern

The U.S. dollar index is forming a potential Bump and Run Reversal Top pattern. Since the index broke above a 6-month lead-in uptrend channel in mid-November, prices have advanced sharply along a steep bump trendline as excessive speculation drove prices up in a bump phase. This uptrend will continue only if prices break above the second parallel line and stay above the bump trendline. However, prices broke below the bump trendline last week after near three weeks of unsuccess to break above the second parallel line. Now the bump trendline becomes a resistance and the dollar gets into an intermediate-term correction as long as it stays below the bump trendline. 100.5 near the first parallel line would be a support to test.

 
usd-1-9-2017

Gold – Bump and Run Reversal Bottom Pattern

The gold index is forming a potential Bump and Run Reversal Bottom pattern. In mid-November the index broke below a 3-month lead-in downtrend channel. Since then prices have declined sharply along a steep bump trendline as excessive speculation drove prices down in a bump phase. This downtrend will continue only if prices break below the second parallel line and stay below the bump trendline. Recently prices have broken above the bump trendline with a bullish reversal. Now prices are testing the first parallel line. If the index breaks through this line, the next upside price target would be projected at 1250 near the lead-in trendline.

 
gold-1-9-2017
 
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