For the past few weeks, the US Dollar has been rallying nicely, coming up over 4 points off its lows in late November. As you know, I have been bullish on the USD for a while now, and I think it will continue to rally.
As of now, I still have us in Minor Wave 1 up. I believe we may make one more new high before starting our Minor wave 2 pullback. Perhaps the 79.10 area is a good target for now. That is where Minute wave [v] will equal [i]. There is also some previous resistance in that area.
Here is my count short term:
As far as Gold is concerned, it has come off of its high pretty nicely. However, we are approaching some minor support around 1070. This area had served as resistance back in mid-October, and I think it should serve as some short term support for now.
Each of those trendlines should also serve as support once we test them.
On a smaller time frame, we are also in a downward channel on Gold. Just recently, we tagged the upper end and seemed to back off just a bit. But once again, I think 1070 should serve as support for now. Also, our low from a couple weeks ago is around 1075. That is a key pivot to watch for.
If the US Dollar does continue to go up, that will ovbiously be bearish for Gold. But I expect Gold to have a little retracement soon, once the Dollar tops in Minor wave 1.
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