DOLLAR CORRECTS, BUT REMAINS IN UPTREND
DOLLAR CORRECTS, BUT REMAINS IN UPTREND... When it comes to gold, chartists should keep in mind the inverse relationship between gold and the Dollar. In the indicator window of chart 10, the Dollar bottomed in April 2011 and gold peaked in August 2011 (blue arrows). The Dollar is up some 13% from its 2011 low and gold is down some 15% from its 2011 high. In the main window, the US Dollar Index ($USD) remains in a clear uptrend since April 2011. The index has been zigzagging higher and forged a higher high just this month. Despite the setback over the last two weeks, the index remains well above first support at 81. Support here stems from broken resistance, the June low and the September trend line.
