CHART VIEW – ICE U.S. Dollar Index Futures & CME Gold Futures
Written by Jeff Gilfillan, Vice President at Phillip Capital
Following up on the July newsletter, gold futures failure to breakout this Spring caused the path of least resistance to reverse lower. Our short-term resistance just above 1235 held while intermediate support is now at 2016 lows just under 1125. Long-term support is the 50% front month level around 1080. Last Thursday’s (08/16) daily $16 move lower followed by a close only $1.00 under, provided some hope for a key reversal on a monthly. A continued move higher would target 1235 then 1268 which is within in the gold futures market all-time value area. (see volume bars in the chart below)
The US$ Index futures failed this Spring to find a home in the 2008-2014 post financial crisis range between 71-89.50 in the front month futures. The front month contract has settled back close to the all-time 50% chart point at 96.17. If the gold futures market’s short-term move maintains momentum the inverse relationship may cause US$ index futures to retest the 95.00 then 94.00.
ICE FUTURES U.S. – US Dollar Index Futures – DX – Monthly Continuation
Chart – Track’NTrade
Futures trading is not for everyone. The risk of loss in trading can be substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
CME Group – GC – MONTHLY – GOLD COMEX (Globex)
Chart – Track’NTrade
Futures trading is not for everyone. The risk of loss in trading can be substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
CME Group – GC December 2018 Futures – DAILY – GOLD COMEX (Globex)
Chart – PHILLIP CAPITAL MARKET CENTER (QT Info Systems)
Futures trading is not for everyone. The risk of loss in trading can be substantial. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.
RISK DISCLAIMER: Trading in futures products entails significant risks of loss which must be understood prior to trading and may not be appropriate for all investors. Past performance of actual trades or strategies cited herein is not necessarily indicative of future performance. The information contained herein is provided to you for information only and believed to be drawn from reliable sources but cannot be guaranteed; Phillip Capital Inc. assumes no responsibility for errors or omissions. The views and opinions expressed in this letter are those of the author and do not reflect the views of Phillip Capital Inc. or its staff.