The U S Dollar just broke thru the next key level of support at 91.01 and now setting a new three-year low.
The price of gold reacting to such a move trading up over $ 17.00 on the day.
Next level of support in the Dollar is not until the 90.34 level. FX traders expect a pause at these levels as some take on a long position in the Dollar thinking it is oversold. Many traders believe that type of strategy is like catching g a falling knife.
“Hard to look a roaring freight train in the eye when you sit in the middle of the track,” said one FX Trader, referring to the momentum of a continuous falling U S dollar.
At the same time the Euro is trading at a new high of 1.2185 and the Sterling is also on its highs of today at 1.3736.
Have a wonderful weekend.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.