We have indeed had a false breakout in some risk sectors and indexes but the reversal was hard and fast a pretty good signal of the false break. The US$ is indeed becoming more selective with one of the leads for the selectivity being the usdsgd. (Commented on by Fitzpatrick last week). Alongside rising inflation expectations and US$ selectivity we can see the audusd and the correlation to miners etc scoring new breakouts.
Without the delay here the report.
And here another UBS technical report from the US team.
And here the SC team’s review of fx
Of course, as always, interventions by policy makers can and do affect the natural rhythm (and tech) of the market. The geopolitical world is “busy” at present in all sorts of ways. Gold is correlated to volatility as well as inflation. And is the inverse to the US$. On all three counts she has positive tail winds here, imo. Tariffs and or trade wars are positive for gold.
Here Commerz with their regular on the bullion markets:
BullionWeeklyTechnicals-01022017_
Note gold today over the 1220 technical level.
Hopefully ill update this tomorrow as a V2 with Fitzpatrick’s latest.
All the best guys
Rich
p.s. For the record, on my own book, I am long Eur vs Gbp once again having taken profit a lot higher. If she reverse today’s bar i will be out needless to say.