Monday Morning Update
July 24, 2006
Spot gold has twice tested support at $620. A rally above $645 would complete a double bottom.
The US Dollar Index weakened over the last few days while gold was also falling. The two never continue in the same direction for long. Expect either gold to rally or the dollar to strengthen.
The FTSE 100 shows a similar pattern to the Dow and S&P 500, and is headed for a test of primary support at 5500.
The Nikkei 225 is in a primary down-trend, having respected the 100-day exponential moving average from below. The index bounced at support at 14400, but the overall pattern is negative. A close below 14000 would confirm the down-trend.
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The All Ordinaries is following other markets down, having respected resistance at 4960. Expect a test of primary support at 4800.