Forex & commodities on February 20, 2018: outlook


Here are my discretionary thoughts on forex and commodities. I only trade the S&P 500.
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Thoughts

  1. Will the U.S. Dollar Index bounce to 90.5 again?
  2. Gold and silver will probably retest their support trendlines.

7 am: Will the USD Index bounce to 90.5 again?
There is an inverse correlation between stocks and gold/silver right now. The stock market is down this morning (futures trading), which is why the U.S. Dollar Index is up.
The U.S. stock market will probably make a pullback. Based on this inverse correlation, the USD Index will probably bounce to 90.5 again.

7 am: Gold and silver will probably retest their support trendlines.
Gold and silver’s short term price action is still bearish. Silver is falling more than gold, which is not normal for a rally in a bull market. I expect gold and silver to fall to their support trendlines before bottoming and resuming their bull market rallies.
Here’s gold.

Here’s silver.

Read Forex & commodities on February 19, 2018.

Bottom line

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

  1. Gold and silver will break above their tight range in the first half of 2018.
  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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