Gold falls as the Dollar rises
By Colin Twiggs
March 15th, 2012 1:00 a.m. ET (5:00 p:m AET)
The US Dollar Index broke resistance at 80 on the Weekly chart, signaling an advance to 82. The Index is already in a primary up-trend, as indicated by 63-day Twiggs Momentum above zero. Breakout above 82 would offer a target of 86*.
* Target calculation: 82 + ( 82 - 78 ) = 86
Spot Gold followed through below last week's low, indicating a correction to test primary support at 1500. Respect of the long-term rising trendline would indicate the primary up-trend is intact, but reversal of 63-day Twiggs Momentum below zero for a second time warns of a down-trend. Target for a down-trend would be 1200 to 1400*.
* Target calculation: 1600 - ( 1800 - 1600 ) = 1400
The Hourly chart shows short-term support at 1635 and resistance at 1650. Failure of support would test 1600, while upward breakout from the trend channel would signal retracement to test the new resistance level.
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