I like the way the USD/INR is forming a base of sorts at its 100-DMA at 64.788. Ahead of tomorrow’s FOMC meeting and with a backdrop of China’s rate cut, the chart tells me to go long on USD/INR for a target of 65.22 and then 65.70 (200-DMA). stops are seen below 100-DMA at 64.788
Source: Gold at USD 1240/Oz by year end
- Say Bye Bye to Fed rate hike talk! I dont see it happening in December, not in March and probably not in 2016.
- And by the way, a 10 basis point or 5 basis point hike not really a hike !
- Coming to the point – Gold could rally to USD 1240 by year end. December rate hike is out of question
Gold monthly chart
If I look at the monthly chart, I get the feeling the metal is on its way to kiss the channel resistance around USD 1240/Oz by December end.
October close is just 4 days away. Friday’s closing above 10-month SMA at 1173 would add to my bullish view.
I anyways believe gold is gold in non USD terms 🙂
USD/JPY if off lows. Now above its 200-DMA at 120.97. The overall daily chart tells me its going to kiss its 100-DMA at 121.94 ahead of Friday’s BOJ.
The recovery from the low of 120.60 to trade above 50% of June to August indicates the sentiment is Yen negative. Susbstantial offers could be seen around 122.12- 61.8% of Jun to Aug drop.