What’s Up, What’s Down: Gold Versus the Dollar

Comments for Thursday, July 2, 2009

Looking Ahead to Thursday by Reflecting Back on Wednesday’s Price Action


Higher closes yesterday for the Aussie dollar, Euro Fx, Swiss franc, British pound and Canadian dollar while lower for the Japanese yen and dollar index. The euro made a new recent high and close turning back higher and now should test its highs while the franc is still in a good resistance area barely hanging on to my sell signal. The yen closed lower for the 3rd trading session in a row starting to act like its rally is over and may test the 10200 area basis the September contract. The Canadian dollar made a new recent low again but rallied to settle higher this time continuing to hold a support area around 8600 but still in a downtrend overall. The pound and Aussie dollar settled higher but both looking strong overall. The latter needs to stay above 7800 basis the September contract however. The dollar made a new recent low and close as its downtrend continues.

Swiss Franc Chart

Japanese Chart


Higher closes on Wednesday for gold, silver, gold and platinum but no changes technically except the silver is now in a small bear pennant.. Copper made a new recent high and close still in a very strong and orderly uptrend overall. Gold is still a sell in my opinion but has been consolidating and whichever way it breaks out of its pattern should dictate the direction it will be going. On the other hand, silver is in a bear pennant with a much weaker looking chart pattern than the gold with 1100 my objective basis the September contract. Platinum also settled higher but is still in a large bear pennant or triangle forming a potential top. It should continue down to the 11500 area basis the October contract.

Copper Chart

Gold Chart

Silver Chart

Platium Chart

See the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.

Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.