With the dollar sitting on a multi year support/resistance line, and gold simultaneously trying to push through one, we’re on the verge of a simultaneous resolution which may well be explosive in nature. The third chart below shows two of the indicators for gold (I needed to maximise the size of the gold chart to show everything properly). The balance of evidence suggests a dollar breakDOWN and a gold breatOUT is underway. As I’ve said before, a dollar bounce and gold drop are quite possible here, but the primary trend SHOULD be dollar down, gold up.
