Last day of this week will be definitely very interesting. Overnight, we found out that attack on Iran was approved and military was in early stages of that operation to be later called off by Donald Trump. That is definitely a risk killer and a factor that positively affects the save heaven assets and Oil. On the other hand, we have global indices knocking to all-time highs, like there would be no risk at all. Where is the logic? Well, first of all wars are usually good for stocks (in the mid and long-term) and shares are currently driven by the Central Banks policies, not by the news from the gulf.
In this environment, Dollar took a heavy blow but Friday starts with the recovery attempt. On Dollar Index, price met long-term dynamic support – lower line of the ascending triangle pattern. If buyers think about stopping the drop, that is the place for that. Breakout will give us a super strong sell signal.
USD/JPY brokr the lower line of the flag and the horizontal support on the 107.9 but foremost, the long-term dynamic up trendline. Price closing a week below the last one, will be a proper signal to sell the USD.
Weaker USD and the tensions in Gulf region are great for the price of Gold, which made new long-term highs. This week’s candle is very encouraging and the price being above the horizontal resistance on the 1365 USD/oz is a legitimate signal to go long. Gold fever is back?