- Oil’s breakout suggests that the USD will breakdown on the downside.
- Silver’s surge is not confirmed by gold.
1 am: Oil’s breakout suggests that the USD will breakdown on the downside.
The USD Index is stuck in a very narrow range, which means that neither bulls nor bears have an edge here. This is a day trader’s market.
I previously thought that the USD Index would breakout on the upside. Perhaps I was wrong. Oil has broken out on the upside. And since there’s an inverse correlation between oil the USD Index, this suggests that the USD Index will breakdown on the downside.
1 am: Silver’s surge is not confirmed by gold.
Silver surged yesterday, but this surge is not confirmed by gold. Gold remains capped at its resistance trendline. I will not turn medium term bullish on precious metals unless gold also breaks out from its resistance trendline.
Read Forex & commodities on April 18, 2018: outlook
I only trade stocks. These are just my thoughts/outlook on other markets.
- Gold and silver are in bull markets.
- I’ve decided to buy some gold and silver as long term investments.
- The U.S. Dollar is in a bear market.