Why I am getting very Cautious trading Long - Gold / Precious M
USDX has really fallen off a cliff this week & this lowering of the USD has been supportive of Gold & all at a time when Gold has been bided up a bit too much & making the Gold price overbought on the Stochastic's higher-time-frames.
With USDX and the Gold-price having an inverse relationship, my chart shows just how much the USD has been oversold this week on the important 4HR, Daily & Weekly Stochastics.
A strong cross-up on the 20 level could signal a rally in USDX soon, I tip it will rally next week if not before finding strength during late Thursday and Friday trading.
There is a tonne of economic news coming out today Thursday morning, will it be a mixed bag and what impact will have on the Gold price and USDX... We will know later.
