Sunday, December 20, 2009

$USD versus Gold

The first two charts show that the $USD has had thrusty move off the bottom to a resistance zone. The RSI is flirting with 70 so its likely to pause to consolidate or retrace somewhat at this level.



The last three charts show how gold rallied out of an inverse H&S pattern, approaching a full measured move of 100% from the BO point in relatively little time (parabolic move), but stalled , carved out a bearish island reversal pattern, followed by a steep decline back to the accelerated trendline. Price and the accelerated trendline are on the edge of the ambush zone of the last leg up, so this is a possible area for a retracement.





Click on charts to enlarge

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