[ProfileOou]

Gold


• Resistance is being tested here around $1,024 - $1,030, where the reverse head and shoulder
neckline, downtrend resistance and all time high converge.
• A failure to rally through in the short term would be an indication for USD strength while a weekly
close above $1,030 would have to be considered a bullish break on gold that would be a bearish indication for the USD.

Gold and EURUSD

Still a good relationship.

EURUSD


• Almost tested the 76.4% Fibonacci retracement against the high at 1.4758 (high so far has been
1.4750). A failure to rally through there and a breach of the support level at 1.4480 in the short term
would suggest a test of 1.44 (55 day moving average) and 1.4340
• A breach of those supports would argue for a deeper pullback over an extended period (weeks).
• Note that the past three weeks have seen a failure to post a weekly close above the 1.4720 resistance level and we also have an evening star like pattern suggesting weakness ahead.
• A weekly close above 1.4720 (especially if we also get a weekly close at new highs on gold) would lead us to suggest that the trend is still up and further gains are possible in the short term and well as the medium term.

USD Index (DXY)


• The September 2008 low has continued to hold as support and while the market has been volatile, the low this morning was on the 76.4% Fibonacci retracement against the September 23rd low which comes in at 76.21
• A continued hold of this in the short term would suggest a test of the converged resistance area and 55 day moving average at 77.83