A Quick Look at the Greenback
posted Sep 23, 2004 at 06:28PM
As mentioned in the weekly commentary how much "juice" the HUI wave 3 gets will depend on what the USD does.
To review the benchmarks. Breaking 88 support would be nice for gold stocks. Breaking horizontal support (at approx 87.42) should really get things rocking. If it breaks 87 then there is good chance that stocks will start convulsing upwards.
And yet remember, the trend line has not yet been broken. Daily stochastics are getting close to oversold. If the bearish case prevails that is where we should see a retest of the triangle break-down point.
In this environment I would put more emphasis on price action that indicator condition (unless they are at extremes - which they are not)