[Weekly Recap|29/16] Trends breathing in XAU, XAG + USDollar sees successful upside B/O, EURUSD gets little Push

This week we’ll merely do a chart update on the important markets yielding trends discussed during the last couple of videos. In focus are the EURUSD which did get a little push on Friday to the downside, the current situation in the Dow seems worthy to look at since so many people are still selling, calling the top. And the starting trend in the USDollar Index is part of the update.

Dow Jones Daily

Price successfully zoomed through the weekly breakout zone and kept trading higher. So far there is no major weakness in the Indice markets: price stays above the trendlines, even on the smaller timeframes (4h) there is no major correction so far. It’s anyone’s guess where the trend will be over. The past week has seen some bulls leaving the arena, but will that be enough to kill off the current uptrend? On the weekly, it has merely started! An entire new bullish market phase could also be the result of this breakout next to the ever-persisting possibility of this market reversing, which would turn the breakout into a fakeout at this point in time. However, as of now the upside breakout on the daily and on the weekly timeframes are working well. We’re seeing a market rising quickly and without questions asked, i.e. w/o major pullbacks or even longer corrections. Nobody knows if this market behavior will finish soon or take even the Nasdaq and european Indices to new highs. Let’s simply follow then.

USDollar daily

After a long-term divergence sent prices into a major correction, this correction seems to be over suggested by recent price action. The USDollar Index formed a bottom in May, July saw another bounce off of the 11650 level. After this failure to continue lower, prices rallied heavily to the upside and we now saw a successful upside breakout during the past couple of weeks. The very last trading week supported the breakout which can be seen by prices closing near the high of the week. A further continuation of the upwards movement is expected until we reach a new high at 12300. Should that scenario be the case sooner or later, it’ll be interesting to look at new divergences that will occur in the Momentum oscillator. I.e. once price hits the possible target of 12300 a larger and more complex correction than the current one could follow. Until then, let’s profit from the uptrend hopefully under way.

Eurusd Daily

The Short has been triggered on the weekly for a while now, so far price didn’t really get going in that direction, but they didn’t stop you out either on trying to follow the overall trend down. On Friday during the past trading week the EU went finally a little bit lower, after hitting a sell signal on the daily chart three days ago. Let’s see if this will carry enough follow through to pick up the old weekly trend direction, which remains down. After the market has corrected that downmove for 1,5 years now, a new downtrend is a possibility. Please refer to previous videos for further details on the Eurusd overall situation, or check this Chart at Tradingview.

Just a few words on the ongoing uptrends for the longer-term in Gold and Silver, there is to mention that the last trading week seems pretty uneventful. Prices did open gap down on both markets last week, the rest of it saw a minor (internal) correction, on the weekly price remains above the balance zone with Momentum still on the bullish side. Patience is needed now to wait for the end of the internal correction which should then be followed by further increases in price. Ride the wave now.


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