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EURUSD Pushing Dual-Support

August 30, 2017 Leave a comment

dollar-bill-166309_1280

The EURUSD currency pair is currently pushing down into the 1.1887 to 1.1915 dual-support area. The current grid for the EURUSD pair looks as follows:

5/5 – 1.2000

4/5 – 1.1971

3/5 – 1.1943

2/5 – 1.1915

1/5 – 1.1887

0/5 – 1.1859

Should dual-support be lost, then watch to see if 1.1859 holds or not.

The bigger picture view of the EURUSD currency pair is:

5/5 – 1.2000

4/5 – 1.1859

3/5 – 1.1718

2/5 – 1.1578

1/5 – 1.1437

0/5 – 1.1297

Should the Euro strengthen against the U.S. Dollar then consider the following level:

5/5 – 1.2994

4/5 – 1.2795

3/5 – 1.2596

2/5 – 1.2397

1/5 – 1.2198

0/5 – 1.2

Expect resistance at the 1.2198 and 1.2397 dual-resistance level.

The current Balanced Price Range (BPR) (can change daily) for EURUSD is .7677 to 1.2346. So, contrary to some current speculation about the EURUSD moving above 1.2000 and perhaps as high as 1.2500, the high end of the pair’s BPR is currently below the dual-resistance top of 1.2397.

The DXY recently rebounded off of it’s dual-support of 92.16 to 92.44, so that would seem to run counter to the idea that EURUSD would move toward 1.2300 to 1.2500. This, of course could change, but the ingredients do not appear to be in place, technically, for that move to happen at this moment.

The Balanced Price Range (BPR) uses principles of Alan Andrews’ Action-Reaction, the concept of balance, algebra, square roots and other elements to forecast the maximum low and high price based on the current day’s closing price.

Disclaimer: The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Author does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, author disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.

U.S. Dollar – DXY Dual Resistance Drop

August 29, 2017 Leave a comment

The U.S. Dollar (DXY) sits near dual resistance of 92.44 and 92.16.

Below 92.16 is the the more important level of 91.88. Should that level not hold, then the DXY could eventually dip into the 80’s. However, it would not be surprising for the Dollar to find some support near 91.88.

The big picture view of the DXY:

5/5 – 120.00

4/5 – 112.97

3/5 – 105.94

2/5 – 98.91

1/5 – 91.88

0/5 – 84.85

Current levels of interest for the Dollar:

5/5 – 93.28

4/5 – 93.00

3/5 – 92.72

2/5 – 92.44

1/5 – 92.16

0/5 – 91.88

The failure yesterday of the DXY to hold above the 92.44 top of the dual resistance level could indicate weakness or simply that the Dollar will test resistance. Bouncing and holding above 92.44 could represent at least a short-term bounce.

Disclaimer: The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Author does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, author disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.

Gold and 1300

August 28, 2017 Leave a comment

Gold has had difficulty closing above 1300. The reason for that is that there is an important resistance level at 1299.41.

Even assuming that gold can close the week above 1299.41, expect a clustering of resistance at 1319.29 and 1339.17.

A potential argument against a substantially higher gold price can be made based on the chart below.

Gold-Action-Reaction-Fib-8-28-17

The current gold market is exhibiting striking similarities to the 1970’s to 1980 bull. Gold’s price sits within a declining channel which, until price breaks out of it, will likely remain within a range.

To even challenge the top of the channel, the gold price will have to break through the cluster of resistance at 1319.29 and 1339.17. That may (or may not) prove challenging.

Even if we boldly assume that price breaks through the resistance clusters, it faces further resistance at 1395.20 (.618 Fibonacci) and 1398.82.

As this is being written, the gold price is near 1305 so we’ll see if 1300 finally gets taken out on a weekly basis.

The U.S. Dollar Index (DXY) has failed to break through (thus far) its cluster of resistance at 92.16 and 92.44, so one could make the case that a weakening dollar would be positive for the gold price.

Continuing U.S. political instability, the inability of Congress and the President to move an agenda forward, as well as international tension with North Korea, etc. could also weaken confidence in government institutions and the economy. This too, under traditional fundamental analysis, would argue in favor of the gold price strengthening.

At this point, however, we need to see if gold can close the week above 1300. If so, the next challenge will be the cluster of resistance at 1319.29 and 1339.17.

Disclaimer: The information provided here is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.

Author does not make any guarantee or other promise as to any results that may be obtained from using this content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, author disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

Content contained on or made available through the website is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.