From the above chart we can see that the US dollar has rallied to challenge its previous high, but is now being held up around 86. Here the USD appears to have formed a double top and now looks to break down through the support line that this two month rally was built on.
Watch closely for confirmation of this bearish double top formation, as a break down through 84 at the greenback’s short term support line would suggest a spike up in gold prices. As noted in an article earlier this week, gold is very close to making a new high and breaking through some more technical barriers, and so a dip in the USD could just push gold up enough to break these barriers, clearing the path for a challenge of $1000/ounce.
Stay tuned people..
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