marctomarket.com / by Marc Chandler / February 13, 2017
The Dollar Index is extending its advancing streak today into its eighth consecutive session. It is at its best level since just before Trump’s inauguration. It has retraced 38.2% of its decline from the January 3 high of 103.82. That retracement was found a little below 101.
The 50% retracement objective is a hair above 101.50, while the 61.8% objective is found near 102.07. The five-day average crossed above the 20-day moving average before the weekend for the first time in over a month. Technical indicators such as the RSI, MACDs and Slow Stochastics confirm a constructive technical backdrop.
Gold and the Dollar Index tend to move in opposite directions. In fact, over the past 100 sessions, the two have an inverse correlation of -0.93. Although the correlation has softened a little, over the past 60 days, the correlation is about -0.81.