Other markets on May 21, 2018: outlook


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

Thoughts

  1. The U.S. Dollar is approaching its resistance zone & the Euro is approaching its support zone.
  2. Gold and silver are holding up quite well despite the USD’s rally. Precious metals are approaching support.

4 am: the U.S. Dollar is approaching its resistance zone.
The USD Index is approaching its resistance zone at 94-95. I expect it to at least make a pullback here. The USD Index’s short term risk favors the downside.

Also worth noting is the USD Index’s daily RSI. It’s overbought.

The USD Index’s rally is being driven by the EURUSD’s decline. EURUSD is approaching its support zone.

4 am: Gold and silver are holding up quite well despite the USD’s rally. Precious metals are approaching support.
Gold and silver have a strong inverse correlation with the USD right now. Thus, gold and silver are facing bearish pressure from the rising USD.
However, silver is holding up quite well despite the USD’s rally, which is a sign of bullish price action. And with the USD close to reaching its resistance zone, I expect a short term rally in gold and silver (especially silver) soon.


Read Other markets on May 18, 2018: outlook

Bottom line

I only trade stocks. These are just my thoughts and 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.

2 comments add yours

  1. You commented last that you had a target of 1265 for gold & 15.60 for silver.
    Has those targets changed?
    Thanks, Ray

    • Yes. I prefer not to use absolute $ targets. Instead I prefer to use risk:reward

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