Dollar Chart

The dollar is rallying on the Goldman news? Riiiigghhht!  This is more of the knee jerk, liquidate all risk type moments.  The fundamentals of the dollar have never been worse and are getting uglier every day this depression continues to materialize.  Many risk trades require dollars to close because the dollar is the the world reserve currency and there are a bazillion of them in existence.  The word liquidity sums is up.  Ordinarily you would expect gold to be the least risky position and the go to asset class for this type of event (Goldman.)  Yet, we have option expiry and a need to knock the nearby strikes out of the money.  As long as the CFTC allows this type of manipulation to happen, gold will suffer from the perception that it is not a safe haven, but a scam to allow the bullion banks and the Fed to pick your pockets.

The dollar is rallying and almost up to the 20 day MA.  Stochastics have peeked above the 20 signal line and the initial target resistance is the 20 day MA or the nearest moving average, whichever is closest.  In this case it is the 20 day MA.  More weak resistance at 81.90, and strong resistance at the previous rally high of 82.30. Support is coming from the 50 day MA and the lower boundary of the Bollinger band.

The weekly chart is another story.  Stochastics are flashing a sell signal by crossing the 80 line after the embed.  As with the daily chart, only opposite case, price should initially set a target for the 20 week MA or the nearest moving average, whichever comes first.  In this case it is the 20 week MA.  Price is seeing resistance at the 50% Fibonacci retracement and support at the 38.2% line.  The 10 week MA is also right there around 80.  Further support below at the 20 week MA and then the 40 week MA.