US Dollar Index, Gold and Crude Oil Outlook

0 Comments Published February 6th, 2010 in 4xGenie

US Dough Index, Gold and Crude Oil Outlook.

The US Dough Index

The US Dough Index is in a primary up-trend, having broken owing to 80.5, and offers a target of 90.0. Reversal below the rising trendline is unlikely, but would warn of a test of primary support at 76.5.

Gold

A strengthening dough usually signals gold weakness, but there are two factors that mitigate against this: continuing low interest rates (higher rates increase the attractiveness of alternative investments); and rising concern over independent debt, causing a flight to the (relation) safety of both gold and the dough. Breakout above the declining trendline would signal a test of the January high at $1165, while reversal below support at $1080 signal a primary down-trend. A Momentum Oscillator (21-day) peak below zero would also warn of a trend reversal.New Target 1.025

Crude Oil

Crude retreating below the rising (green) trendline warns of trend weakness — and failure of primary support at $72 signal a primary down-trend. Recovery above $76, but, indicates another test of resistance at $80. New Target $68.