HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Gary Grosschadl
Gold often swings with the US dollar and the Euro, and it looks like this dance may continue.
Position: N/A
Gary Grosschadl
Independent Canadian equities trader and technical analyst based in Peterborough
Ontario, Canada.
PRINT THIS ARTICLE
CHART ANALYSIS
Swing Time for Currencies and Gold?
07/02/03 12:13:18 PMby Gary Grosschadl
Gold often swings with the US dollar and the Euro, and it looks like this dance may continue.
Position: N/A
| As the charts show, the Euro and gold often make close dance partners while the US Dollar likes to do its own thing. It's not a new phenomena that when the USD is strong gold is often weak and vice versa. The Euro, like gold, usually runs counter to the USD and therefore often runs in tandem with gold. |
| It often is revealing to compare the Euro to the USD as it is possible to see strong signals occuring in opposite directions, suggesting a turn in the making. Here a possible doji type reversal (bullish morning star pattern) has formed with confirmation the next day or two for the Euro. At the same time the USD shows a possible stall candle. A stall candle is characterized by having a small body, hugging the top side of the previous day's large bullish candle. This hints at the bulls losing steam with a reluctance to move higher. Again next day confirmation is required. |
|
| Daily charts. |
| Graphic provided by: Stockcharts.com. |
| |
| The stochastics also shows the outlook for gold and the Euro oversold, both looking for a possible bounce with a coming move above 20. The opposite shows for the USD stochastic, which is in an overbought situation. The danger of a downturn occurs when the stochastic heads back down through the 80 level - something to watch for. |
| Watching the interplay can give valuable clues to what lies ahead, not only for these commodities but also the main equities indexes and the gold XAU index. |
Independent Canadian equities trader and technical analyst based in Peterborough
Ontario, Canada.
| Website: | www.whatsonsale.ca/financial.html |
| E-mail address: | gwg7@sympatico.ca |
Click here for more information about our publications!
PRINT THIS ARTICLE
|
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog