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US Dollar Index & Gold

Technical observations of

Bob Hoye
Institutional Advisors
Posted Oct 29, 2009

Most interim lows in the Dollar Index in the past two decades have been preceded by downside wedges and weekly Sequential Buy Setups. We have finished eight weeks of the nine week sequential pattern. Assuming that prices close below 77.05 on October 30th the setup will be in place. An upside reversal in the MACD serves as a means to identify the change in trend. Overhead resistance would be anticipated at the 20 and 50 week moving averages (77.95 & 79.65).

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Rallies back to the 20-week moving average (currently 77.95) in the US Dollar Index in this decade have provided eleven timely opportunities to buy gold on its correction. These points also coincide with RSI(14) readings in the mid 40's in the Dollar and 45-51 in gold.

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Oct 27, 2009
Institutional Advisors

Hoye Archives

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