USD continues to surge due to a stronger US economy and the $ has significantly strengthened over the past month and it looks likely the current uptrend will carry USD to at least $94 by the middle of next year 2015.
Several factors are helping the resurgence of $USD – hawkish statement from the Fed, strong DOW, SPX, NDX and $50 trillion of Japan stimulus. As a result, USD breaks to upside through strong resistance 87 but on the contrary, gold tumbled through $1,180 – a breakout from big triangle. Falling out of the big triangle means that, the prevailing trend will continue to go down to hit the next major support which is around $1070-1090 followed by $1000-$1030.
Those who follow my blogs should know that we have been shorting gold and silver for very good profits. I take no joy in shorting gold as I am a gold-bug by nature in general but as mentioned so many times, I need to respect what the Cycle analysis tells me. Gold Bull Cycle is not coming yet and you need to be patient…Why not shorting (selling) first to make some good profits. There is a time to buy and there is also a time to sell. Don’t operate like die-hard gold bull or permabull-gold even you love gold and silver like me.
$USD has a lot more upside and will continue to go up and up into late next year. Don’t listen to those analysts who preached about the death or collapse of the USD since 5 years ago. Yes, the demise of USD is quite a certainty but not now…Meanwhile enjoy the ride up in $USD. SHORT EURO and YEN and even AUD.