Gold and Dollar Potential

click charts to enlarge

Here is a quick look at two markets gaining a lot of attention today. The charts included are a weekly of the Dollar Index and a weekly of Gold. We have included the Fibonacci Extension overlay as we interpret them.

The Dollar chart shows it has reached what we refer to as the first target which is approximately 76170. The second target that is displayed is at approximately 75000.

In the Gold chart the extension targets shown the way we have constructed this are approximately 106400 and 110650.

We are not saying that these will or must be hit but believe they provide reasonable guidelines and may help in managing positions in these markets. As always, we are open to discussion on such matters.

A scenario under consideration is that if the stock market continues to rise to projections off approximately 112500 and 122500 basis the S&P 500 then this could likely improve the chances of the Dollar Index and Gold reaching these targets. These S&P 500 projections mentioned are approximate levels representing the .500 and Fibonacci .618 ratio retracement using the October 2007 high and the March 2009 low.



Good trading to all

Jeff and Diego

www.jmajer@mfglobal.com
www.dpilar@mfglobal.com

312 261-7380
800 321-5810

Futures and options trading contain substantial risk of loss and may not be suitable for all investors.