NFTRH+; Technical snapshot of the 2 Riders

Quick look at USD and the Gold/Silver ratio (GSR), the 2 riders of the (would-be) liquidity Apocalypse… daily charts

usd and gold/silver ratio

I will be out the rest of the day (also all day Thursday and Friday), but want to pop a quick update on the all important duo of USD and GSR. The reminder is that if these two hold support (already have) and continue to rally the implication would be for increasing liquidity pressures across many markets.

If this is just an ill-fated bounce and the USD declines to theoretical point ‘C’ of the weekly chart we’ve been reviewing, a bullish situation would likely erupt across asset markets. As yet, we’ve got a hint of the bad stuff, but not a new trend that way. So we’re still in wait and see mode, with both possibilities still in play (as I guess the media portray the US debt squabble as a main point of contention).

First the leader. The Gold/Silver ratio remains elevated after its big pop last week. In holding a higher low to December, liquidity pressure is building but the situation would likely become impulsive with a new trend if it were to make a higher high to March.

gold/silver ratio

Uncle Buck says “I dare ya, keep spewing those dedollarisation slogans and I’ll keep on holding support and consider rallying.” Remember, this unimpressive daily chart support level is much clearer support on weekly and monthly charts. Ref. NFTRH 757 for the weekly chart view.

USD is firm along with the gold/silver ratio