web stats
T3 Live

Why the US Dollar Is Vulnerable, and What It Means for Gold


The ‘Dutch Trump’ populist lost his bid to become Prime Minister last week.

This may have elicited strength in the euro and selling in the dolloar.

A daily dollar shows it broke its 50 day line with authority triggering my Expansion pivot sell signal in the process.

In so doing the dollar also triggered a Rule of 4 Sell in snapping a rising 3 point trendline.

The setback in the dollar came despite the Fed’s interest rate hike even as the Fed signaled this was the beginning of a campaign of consistent raise in rates.

The break in the dollar backstopped a surge in the precious metals miners on Wednesday.

GDXJ  ripped 34 to 38 and now shows a 50% retrace toward initial support.

Well-defined support comes in between 35 and 36 where another higher low on the hourlies may be installed on another big backtest… a fractal of the Big Backtest that played out on the dailies last December.

Unless the dollar can recapture its 50 day in short order it is vulnerable to a break to 98 and an Eiffel Tower move — a complete retracement of the post election rally.

An extension lower in the dollar should perpetuate a breakout in gold and the miners over the last swing high.