After a quiet day with a downward bias yesterday, gold dropped below Friday's 1419 low early this morning and the selling has since accelerated, as we suspected it would.
The market is approaching key support at 1404 - if this level doesn't hold, we could be set for a much deeper correction, with a retest of 1322 a distinct possibility.
Oil is much weaker, falling back to $93.50 and approaching Friday's low, whilst the dollar continues to surge higher, approaching key resistance at 84.
Therefore, oil, gold and the dollar are all approaching critical support/resistance areas. How the markets react at these key points will indicate the near term direction of these markets.
We suspect gold and oil are going lower and the dollar will break out and rally - we wont have to wait long to find out.
Today's video for subscribers looks at the recent trading action and our strategy for our current trade.
The market is approaching key support at 1404 - if this level doesn't hold, we could be set for a much deeper correction, with a retest of 1322 a distinct possibility.
Oil is much weaker, falling back to $93.50 and approaching Friday's low, whilst the dollar continues to surge higher, approaching key resistance at 84.
Therefore, oil, gold and the dollar are all approaching critical support/resistance areas. How the markets react at these key points will indicate the near term direction of these markets.
We suspect gold and oil are going lower and the dollar will break out and rally - we wont have to wait long to find out.
Today's video for subscribers looks at the recent trading action and our strategy for our current trade.
