The Big Boys, page-926

Just a follow up to my post on the 27 July, as linked in the "reply" bar, on moves in the US Dollar, i.e. DXY index, which closed at 94.04 that day.

"Conclusion:
If DXY follows normal stock type behaviour, then I'd suggest
- a bounce off the 38.2% level shown in pink shading as first target (say 91.50)
- a longer term drift down to blue shaded area around 83."

What happened over the past two months is that the DXY fell to 91.62 in August and has formed a bullish harami so far this month, albeit still early. So it looks like my initial target was correct and is now bouncing.

This is quite interesting to me. I don't normally chart currencies and wasn't sure if they follow stock type patterns, but in this case it has.

What's more relevant maybe is that one of the talking heads on Sky Business this morning pointed out that a rise in the US Dollar will be negative for gold. Perhaps we get a US Dollar bounce, and a correction in gold aligned with a cooling in North Korea rhetoric for the next while.