Key support definitely broken now for the US dollar, so next interim support is way down at 85. At the current Davos meeting, US Treasury Secretary Mnuchin reportedly said that he welcomes a cheaper dollar.
That's good for gold, which is testing near term resistance around 1350. The gold chart bottomed in late 2015 and since then has formed a bullish ascending triangle, with 1350-1375 as the upper boundary. From a TA perspective, getting thru that would officially confirm a trend reversal and a new uptrend in place.
Could be stiff resistance at 1400, and I figure that's where the gold suppression mechanism might kick in. But with the dollar breaking key support dramatically and having a long way to fall, gold should be testing 1400 soon.
Meanwhile the stock 'melt up' continues. The big corporate tax cut could propel the DJIA up to 30,000, but the chart is starting to get a scary parabolic look to it, and the N. Korea situation isn't going away. Too early to short, but a showdown with Kim Jong Un could be 3-6 months away, or possibly right after the Olympics (?) The stock market seems oblivious to the risk.
