Gold and The $USD... Greg Schnell, CMT

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10/03/2011
Gold and The $USD

As Technicians, we have the privilege of comparing different stocks, commodities, 

currencies all on the same chart. Too cool.

John Murphy (The Blog Writer at Stockcharts) wrote a book called Intermarket Analysis that 

really had technicians in disagreement for a while as he stepped out from previously understood 

conventions. Today, this book is a required reading for the CMT designation. 

Upon finishing the book, you are compelled to try to utilize the body of knowledge he was 

departing by producing endless charts of comparisons.

Some of my favorite charts are derived from Intermarket Analysis. In speaking with a long time 

technician the other day, he stated that the fastest sensors to change are in Forex, then Bonds, 

then stocks. Maybe we should look there for a clue.

We are all wondering if Gold is in an intermediate stage bounce, or actually impaired long term. 

So I tried to chart it with a few intermarket ideas.

If we examine this chart in order of the boxes, we can find some interesting clues. .......

http://blogs.stockcharts.com/canada/2011/10/gold-and-the-usd-.html

Notice on the last three peaks in Gold where it broke down more than 10%, the $USD was exhibiting an upside breakout as well. Not all price moves in a commodity are currency related but currency is a big one.

Good Trading,
Greg Schnell, CMT

http://blogs.stockcharts.com/canada/2011/10/gold-and-the-usd-.html

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