Buy Signals generated. 20day MA crosses 50 day & 200 day. 50 day crosses 200 day. Nice little bull flag with a EURUSD Target in the 1.13 region.
USD is some bit of: www.youtube.com . But going now back to reality....
A trend change in the DXY weighted SPX indicates that SPX top was already reached. Similar to the 2000-2003 bear market this trend change appeared prior to regular SPX tops. Oct.2014 "Bullard-Correction" defined the trend change. SPX movements since than are only forex related.
DXY weighted USDJPY exchange rate shows a breakdown of our favourit carry trade pair. A further appreciation of the USD without further monetary easing in Japan makes the system presented highly vulnerable...
With Q3 physical Gold sales in the range of 1100 metric tons and mines production in the range of 800 metric tons with a falling USD price of Gold raised some significant discussions about the Gold price discovery being disconnected from the physical demand. In order to avoid any annoying conspiracy theory on this point and maybe proof that there WAS NO conspiracy...
With USD and Gold still being the ultimate save heaven assets, it might be reasonable to take a view on the DXY weighted XAUUSD Price in comparison with the regular XAUUSD. In times of preparing for crisis/hedging for crisis/financial turmoil we see some divergence between these two charts. So, since Oct. 2014 we have this divergence again and the gap is this time...
It is quite interesting to see that major gold price movements start around the same time when japanese QQE extension is announced and JPY weakened. Since October 2014 this correlation is broken. Extension of japanese QQE is currently unlikely and since Eishi "Mad Dog" Wakabayashi expects a significant strengthening of JPY we should expect XAUUSD getting back...