US Dollar Has Work to Do to Continue Outperformance of XAU/USD on Daily Time

Russell Shor, CFTe, MFTA FXCM

The below is the daily relative strength chart of the USDOLLAR to XAUUSD. We note that a higher trough (HT) followed by a higher peak (HP) has charted. This is the classical definition of an uptrend. We are now assessing if another higher trough (HT?) in the series is charting. If the green 5-day EMA crosses above the orange 10-day EMA (green ellipse) and the RSI moves above 50 (blue rectangle), these will be regarded as bullish developments. However, for the greenback to continue its outperformance of the precious metal, the EMAs will also need to develop angle and separation to the upside. We continue to monitor.

Past performance is not an indicator of future results.
CHART SOURCE: www.tradingview.com

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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