DXY, GOLD, EUR/USD and NVDA Forecast – Conflict Headlines Continue to Drive Things

US Dollar Index Technical Analysis

The US Dollar Index has rallied again during the early hours on Monday as we continue to see a lot of noise and choppiness right around the 200-day EMA. If that is the case, then it looks very likely to be a scenario where you will have to watch how the Forex markets behave.

They are, without a doubt, going to be a very volatile place, but it certainly looks to me as if the dollar is trying to reach the 100 level. Ultimately, as long as we continue to see upward pressure, I think that is your potential target. I really wouldn’t be shorting the dollar at this point.

Euro Technical Analysis

That being said, when I look at the Euro, it does seem as if it is recovering from the crucial 1.15 level. The 1.15 level is an area that I think a lot of people would be watching, and if we were to break down below there, then you could see the market truly fall apart.

At this juncture, I think you have to believe that we are at least going to try to normalize in this same range. This favors a standoff here at 1.16. I’ll see if there are signs of exhaustion that I can fade.

Gold Technical Analysis

The gold market initially fell, but then turned around to show signs of life, and that suggests perhaps that the market is still not convinced what to do. The sideways action was a bit surprising, as one would have thought that gold would have shot straight through the roof, but it didn’t. Maybe that tells us something.

I’m watching $5,000 to see if we break down below there. It could lead down to the 50-day EMA. Short-term trading, I think it is rangebound. I think that is what you have here more than anything else. Not necessarily a big selloff, but not necessarily a big push higher because, quite frankly, we had plenty of reasons to scream higher at the open and we didn’t. The US dollar actually attracted all the inflows.

Nvidia Technical Analysis

Finally, I’m watching Nvidia because it’s been such a great rangebound trade for months now, while people simply fall asleep looking at this. There have been multiple entry points that could be interesting. If we were to drop towards the 200-day EMA, I’m looking for a bounce to have a small trade.

It’s not a big investment. I wouldn’t put half my portfolio in it or anything like that, but it would be a reasonable risk to reward ratio setup because we could go looking at the 50-day EMA. If we were to break down below the $170 level, then something materially has changed. Ultimately, I don’t know that Nvidia has anywhere to be, but as we’re closer to the bottom of the range, it’s worth watching. It might provide a short-term opportunity.