Forex & commodities on April 27, 2018: outlook


Here are my discretionary thoughts on forex and commodities. I only trade the stock market.
Go to the homepage for my latest thoughts on forex and commodities.

Thoughts

  1. The USD Index’s next target (resistance) is at 92.4.
  2. The USD is breaking out. A short-medium term bearish factor for gold and silver.

1 am: the USD Index’s next target (resistance) is at 92.4
The USD Index has finally broken out above its resistance.
The next resistance level is at 92.4. But the big resistance is at 94. I think the USD Index’s rally will AT MOST get to 94.

1 am: The USD is breaking out. A short-medium term bearish factor for gold and silver.
There is an inverse correlation between the USD and gold/silver. With the USD breaking out, gold and silver will probably make a short-medium term breakdown.
Gold and silver sometimes have a lagged response. I.e. the USD will rise first, and gold/silver will fall towards the end of the USD’s rally.
There is one caveat to this prediction. If the USD Index reaches 94 and gold/silver still haven’t fallen, then that is a BIG medium term bullish sign for precious metals. It means that the USD’s rally has been unable to bring gold and silver down.


Read Forex & commodities on April 26, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts/outlook on other markets.

  1. Gold and silver are in bull markets.
  2. I’ve decided to buy some gold and silver as long term investments.
  3. The U.S. Dollar is in a bear market.

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