Dollar and GLD update 2009-12-16

The dollar ($DXY in top chart) continues up in a wedge that may resolve itself downward. The wedge combined with the resistance from a few months ago (horizontal red line) will require a bit of strength to go through. Such a drop could go as far as the 50dMA (blue line), regain support and continue it's rise.


Conversely, GLD should do the opposite, gaining support from it's 38% fib retracement and rising up from $110.80 to it's 23% fib at $114.07, with a stop under $109.25 should make for a tight trade.