A Look at Gold and the Dollar

It's no secret, lately I've been shorting gold and going long the dollar. Here's an update to my analysis of both of these instruments.

Below are two daily charts...one is the Eur/Usd and the other is Gold. I trade these two in conjunction with each other because their moves tend move counter to each other, and this action also can be conformational in nature.

Here is the daily gold chart.
(*I meant that the stoch is over bought)
The above daily chart of Gold shows that there are multiple sell signals--those being the Trender lines, the Fisher Transform, the Bull/Bear indicator and even the stochastics (I added this indicator so that there would be a common indicator that people can relate to) gives a sell. Boy this is very bearhish chart for Gold. Now we have to confirm the downward move. A rising dollar (or falling Eur/Usd pair) would indicate that this precious metal is likely to head lower. Here's the daily Eur/Usd chart.
Notice that all the same signals from the Gold chart above are also giving sell signals in the Eur/Usd pair. This tells me that I should definitely hold onto my short gold position, as well as my long dollar position. Although there is some doubt as to wheter the Israel/Hamas war will end, the price action tells me that gold is heading lower, indicating that there will be peace in the middle east...for now. Like I always admit, I could be wrong and that would not be anything unusual. That being said, the technicals on the dollar seem to be getting stronger while the technicals on gold seem to be getting weaker...i.e. short gold and buy the buck. At least that's been, and will still be, my trading strategy until the market tells me otherwise.

Good luck out there.

TLT