A look at the 10 year treasury rate again and we see a potential bounce underway. Our target has been and continues to be 15 at minimum, which could be weeks away. A retracement to the 38.2% or 50% fib levels is anticipated at levels of 22.75 or 24.56.
TNX Weekly Candle chart
Gold continues to carve out a short term base that may carry price action higher in wave “b” to about 1773, which is the 61.8% fib retracement level. We are targeting the 1300 level over the longer term, which could be several months away. However, the pullback in Gold price will eventually be an amazing buying opportunity for a longer term position that should see Gold explode to higher price levels in the years ahead.
GC Weekly Candle chart
A shorter term chart sees the fib resitance levels that Gold will have to chop through.
GC Daily Candle chart
The USD Index is showing more corrective price aciton ahead, but the RSI is approaching oversold territory. The current pullback is seen as a wave (ii), which should create a base for a stronger wave (iii) to unfold with much higher price levels to come.
DX 4Hour Candle chart
The EURUSD continues to push higher in corrective price action at is approaching fib resistance for a possible retracement in the shorter term. We do expect the EURUSD to move higher before the downtrend resumes in a 3rd wave which should move with more intensity to the downside.