Gold and DXY as not only complementary financial instruments that must by no other choice trade together in the same location by market order but both are non risk assets and traded against the risk asset of the S&P’s.
DXY eventually broke its 5 year average and traded to 89.22 lows, S&P’s traded higher and Gold became the mis placed financial instrument. DXY below the 5 year average at 95.00’s and Gold above at 1461.20 informs Gold remains misplaced.
Either Gold breaks below 1461.20 and joins DXY in its rightful position in the proper market order or DXY breaks above its 5 year average at 95.00 and the S&P’s trades below its 5 year at 2722.43. Its customary for DXY, Gold and the S&P’s to share negative correlations and nearly impossible for a positive correlational relationship unless the relationship of off kilter.
Silver also trades above its 5 year average at 17.74 and misaligned to DXY and the S&P’s. Silver’s first break is located at 21.72 then 19.36 and 19.06. Silver’s best move to target 17.00’s is located on the break below 19.06. The first target is established at 26.43. Not much to report to Silver as its price is a dead issue and not worth the trouble. EUR/GBP and NZD/USD not only moves far and wide but both earn more profits and quicker than a Silver trade.
The S&P’s long 3915.15 to its first target at 3924.99 achieved its destination however lows traded to 3918.52. Not much existed to the S&P trade overall nor was much expected particularly after a Monday holiday and no change to daily interest rates.
S&P and DAX Trades
Today’s S&P’s for a quick trade is long 3912.92 to target 3922.75 then 3927.66.
Today’s DAX for anothe quick day trade is long 13994.27 to target 14029.43 then 14054.60.
Yesterday’s EUR/USD dropped exactly at the confluence of the daily and weekly entry at 1.2168 and target at 1.2065 achieved however lows traded to 1.2063 for an extra 2 pips.
For the 2ng leg to the weekly trade as posted Sunday, EUR/USD is in a crucial position and quite the opposite to the ease of the first trade yesterday. EUR/USD’s significant high/low point is located at 1.2040 and a break lower then much room exists for a drop to 1.1947.
Today’s longs are located at 1.2065 for the weekly target at 1.2114 and the daytrade location is 1.2117.
To add a 3rd leg due because our trades are continuous and never end, short at 1.2114 and 1.2117 targets 1.2094 and 1.2090. EUR/USD low point today is located at 1.2033 and 1.2026 and the daily target on a break of 1.2040.