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.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.
Recommended Content
Editors’ Picks
EUR/USD stays near 1.0800 after upbeat US data
EUR/USD stays under modest bearish pressure and trades near 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.