The markets are at a very key spot right now. The institutions have made a reversal in price since May of this year and we have not seen a pull back in order for them to reposition themselves for the larger move that is expected.
GOLD ~ When examining gold we can see the weekly drop is overextended and is due for a move upwards especially after the institutions took out some considerable demand on the monthly chart. pullback is expected.
=> We can already see the momentum shift to the upside on the daily chart.
DOLLAR ~ As for the the US Dollar to help facilitate the move on gold, we need to see the weekly demand at 93.83 get removed first to make a move lower greater odds. The odds of this happening are good considering the look of the weekly chart.
$EURUSD ~ Weekly supply is holding price down right now but considering what is taking place with the dollar and gold and also considering the size of the long positions currently held by the banks, the odds of a move up are very good. Once 1.1746 is taken out, look for a move to the 1.1850's and the potentially higher.
The Magic Trader Portfolio is already positioned nicely to take advantage of the moves that are expected to come. Hope you are prepared as well!
Magic Trader