Gold has been weaker than King Dollar the majority of the time since 2011 highs. Gold has been stronger than King Dollar since Christmas of last year. Which trend is going to be the key trend over the next few months?
Below looks at the Gold/US Dollar ratio over the past seven years and highlights that an important price pattern is taking place-
CLICK ON CHART TO ENLARGE
The Gold/US$ ratio has remained inside of the blue shaded channel for the past three years. The rally since last Christmas has the ratio testing the top of this channel and three other resistance lines came into play at (1). Since hitting the top of the channel and triple resistance, the ratio has turned lower (Dollar stronger than Gold) and broken below steep rising support at (2).
Gold bulls would get caution/concerning message should further weakness at (2).
Gold bulls want/need the ratio to breakout above quad resistance at (1), to send a quality bullish message.
The Power of the Pattern at work to save people time, improve decision-making & results.
We identify high probability big pattern reversals and breakouts in global indices, sectors, commodities, several metals and select individual stocks
Send us an email if you would like to see sample reports or a trial period to test drive our Premium or Weekly Research
Email services@kimblechartingsolutions.com
Call us Toll free 877-721-7217 international 714-941-9381
Website: KIMBLECHARTINGSOLUTIONS.COM
via http://ift.tt/2y4JnwP kimblecharting