Wednesday, January 17, 2007

Thursday Commodities & Currencies

All charts and comments intended for education and discussion purposes only. No investment recommendations are being offered. Comments below related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Sentiment | THU - Commodities & Currencies | FRI - Market Breadth | SAT - Bullish Percents | About |

Interesting chart below created from an original chart by Steve Saville. 

Gold and Silver shares have a lot to prove before the trend resumes as the chart below shows.

The dollar needs to start trending lower if gold and silver are going to break out.

The US Dollar and the Euro at a crucial junction.

Below is the larger picture of the commodities trend.  The downside momentum has slowed and it is unclear whether this is a pause before the downtrend begins again or whether a low base is building for the entire group.

Posted by HeadlineCharts at 19:40:30 | Permanent Link | Comments (1) |
Comments
1 - You make the comment that \\\"Moves in the Euro confirm, and sometimes provide advance signals, regarding the moves in the US dollar.\\\" That may indeed be true, but it is worth noting that the USDX is trade-weighted, which means the Canadian Dollar actually is the biggest influence on the index.

As to Gold/Silver, I think you are right on. The bulk of Gold\\\'s up move came about thanks to a weakening Dollar. It would make sense that a reversal in the dollar\\\'s recent strength would need to be at least a contributory element in the precious metal moving higher once more. (Comment this)

Written by: John Forman at 2007/01/19 - 02:25:34
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