Technical signals from the RSI, STO and MACD indicators suggest that the greenback’s decline will take a breather, for the next few trading sessions at least, before falling further to break a critical support at 75.
This temporary strength in the USD provides a good opportunity to get short on the greenback or get long on gold at a small discount. Taking such a position should return gains in the short and intermediate term, as well as over the long haul.
The USD has key support at 75, which it will break soon causing a sharp drop which will send gold towards $1200. Note on the chart below how sharply the USD broke down through 75 before in early 2008.
So if you haven’t got long on gold yet, an optimum time to get long will be over the next few trading sessions. Once you have a long position, hold on tight because its going to be a fast, knee jerking ride and $1200 will be upon us in no time!
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