Dollar Index
Daily
4 hour
With the dollar maintaining its bull status, the chart is also supporting such a theme. 4 hour chart shows a bull flag with a projection higher. Despite the daily chart is showing a slightly weaker RSI – please bear in mind the RSI is still in a bullish mode and does not imply imminent roll over yet.
German Bund
Daily
4 hour
The lower timeframe is showing a slight RSI divergence but the daily chart remain in a bullish mode – the trend remain in tact and only a significant sell off to break out of the rising channel will give us more confidence to short this. Otherwise, it is a one way street higher.
Euro
Daily
4 hour
Initially a fake breakout followed by a retest – as per mentioned previously, when the market cannot find new sellers – it can bounce and this is playing out – post Draghi morning speech in Frankfurt – Euro has not tumbled further. Watch for higher rebound into next week as we coupled this with slight weakness in the dollar.
Dax
Daily
4 hour
If Dax fail to capture higher, the daily 200 ma could well be the resistance that stops it. Mind you, there is a gap above at 11250 levels and we could well get there and then reverse hard. However, we do note that the 4 hour chart is signalling a potential change in risk reward. Post Draghi speech, Dax is in no man’s land with new terror attack in Mali.
Gold
Daily
4 hour
After many weeks of selling – gold is attempting a small bounce – short covering relief but bear in mind that this could be a short term agenda. Overall trend is still bearish and sellers may let it rise before reloading on short higher. The risk reward has clearly shifted to go long until we hit key Fib and resistance level to short.
Silver
Daily
4 hour
A nice phase of consolidation period but a retest of previous low or lower is still in the cards. Yes, we may get that short term rebound here given that the risk reward has clearly moved to short covering. Rally higher remain a selling opportunity as it has been so with the overall trend in a bear mode.
The Bullion Times 