Dollar Index and Gold Update

DXY and Gold now appear to be in wave 4 and I reckon that 1200 is an area to watch for Gold to turn and make its last leg down. As I mentioned earlier, personally I'm not going to trade this because I'm trying to catch that supposed Dollar top. Exciting times are coming.

Gold in similar structure as the Dollar Index

The yellow bricks made an impulsive move up from 1046 (December 2015), topped at 1375 (July 2016) and is now in a C-wave to complete larger wave 2.

What's interesting is that Gold is imo in the same phase as the Dollar Index. Although it's not that surprising because Gold tells you particulary a lot about the state of the Dollar and fiat.

Gold is at the late stages of wave 3 of larger wave C.

DXY is also at the late stages of wave 3 of larger wave 5 (of wave C). See my DXY chart in the previous post.

So both DXY and Gold need a wave 4 and a wave 5 after which the Dollar should take a proper hit. 

AUD/USD and Gold going down in a correction fashion

A few weeks ago AUD/USD appeared to be breaking out of  an ending diagonal which made me think that wave C of wave 4 (daily chart) was complete. Aussi  is now roughly 100 down from that level but crucially in a clear corrective structure. In my view there is no way that this price action can be seen as impulsive movement.

However, AUD/USD has still room to go down a lot more and probably will initially go south from here but it is not the impulsive wave 1 (of larger wave 5) that I had in mind when the ending diagonal appeared to be complete.

Gold's movement  is also corrective (and looks also set up to go south in a wave C).

Gold - completed a first 5-wave structure at 1315

The dollar looks to become stronger, Gold completed a 5-wave structure at 1315 and should go down now in a corrective fashion. This will likely give the dollar a short term boost across the board.