Currency market: US Dollar Index, gold, S&P 500
|DXY trades below its 5-year average at 95.00 and many and massive resistance exists at 94.00's. Gold trades above the 5-year average at 1400.00's. DXY and Gold are severely mis positoned as both are the same asset and should trade in tandem above or below 5-year averages.
The S&P's trade above its 5-year average at 2722.43. The S&P's and Gold trade above 5-year averages while DXY trades below. Gold broke above the 5 year average March 2019 while the S&P's traded above the 5 year average January 2020. DXY broke below vital 5 year average January 2020 at the same time the S&P's traded above.
Gold is off kilter to DXY and the S&P's and proper to alignment is Gold must trade below the 5 year average to match its counterpart DXY or DXY must trade above 95.00's. DXY above 95.00 then means the S&P's must trade below the 5 year average at 2700's.
If Gold breaks below 1400's and DXY trades below 95.00's then the system is aligned as the S&P's trade in its proper position above the 5 year average.
The result to Gold's misalignment is lack of trade range. Gold's total daily trade range is 9 pips or to be perfectly exact 8.88 points for a total of 17.76 points.
Gold
As day trades are designed for multiple longs and shorts, here's today's set ups.
Long 1765.31 to target 1774.19. . Short 1783.07 to target 1778.63.
DXY
Long 92.75 and 92.80 to target 92.98. Short 93.79 and 93.74 to target 93.56.
USD/CHF at 0.9228 remains slight overbought as the week began deeply overbought.
S&P 500
Long 4332.41 and 4337.85 to target 4343.30. Short 4375.97 and 4370.52 to target 4365.08.
Any price below or above stated long and short entries are free money points.
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