Gold has broken out and the next level to focus on is 1920. This is near the June high and possible channel resistance from the channel that originates at the September low. It’s also the 2011 high. If price pulls back then support should be 1842/47. The top of this zone is the center line of the noted channel. The bottom of the zone is the top side of former trendline resistance.
UUP (USD ETF) completed a weekly volume reversal last week! Most signals since inception of the ETF have been identified important turns in the ETF and therefore the USD in general.
SPX has retraced 61.8% of the decline from the high. This is also ‘original’ trendline resistance. This is a perfect spot for at least an interim high. I’m looking lower towards 4494 or so (2022 VWAP) and possibly 4404.
Keep an eye on AUDJPY. Monday’s low tagged the center line of the channel from the October high. The 25 line cuts through former lows and is in line with the well-defined 82.10…watch that for resistance. A break lower would target 78.84 and 76.80s, which is 2 legs down from the October high and the lower parallel of the channel. If price breaks below the center line then the underside of that line becomes resistance. Bottom line, there are solid reference points that should help return to the short side.
USDCAD ripped into the upper parallel of the multi month bearish fork today and turned lower. Resistance is also defined by VWAP from the high and the 50 day average. Given the level, I’m looking for USDCAD to trade lower.
USDJPY spiked above the noted line off of the September and December lows but closed just under the line. As such, I’m thinking that today’s high is a lower high within a bearish sequence from the 1/4 high. Focus remains on 112.20/50.
USDJPY broke the line off of the September and December lows. The underside of this line should provide resistance now near 114.70. Initial downside focus is the mentioned 112.20/50 zone.
Make or break time for USDOLLAR! Price closed right at 8 month channel support. IF price breaks below the channel, then the objective is the channel extension which intersects the March-May line and March high at 11929 in early February.
1/11 – Pay attention to the USD indices over the next few days. The big level for USDOLLAR is about 12115. This is the trendline from the May low and September high. A break below would ‘announce’ that the USD trend is lower.
ETHUSD has broken the line described yesterday (magenta line). This line is resistance if reached near 3640. Price is testing the 200 day average now (not shown) but the more important level is probably VWAP from the May 2021 high at 3050 (see below). Bigger picture, my view is that price drops to 985 or so in a 4th wave.