Gold, Euro, And Treasuries React To Yellen

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Fed Chair Janet Yellen is generating a lot of inter-market action with her testimony before congress. I am not going to comment on her comments because market reactions could be different tomorrow. I would remind readers that I covered gold, the Euro and Treasury yields with weekly charts in the Friday’s Market Message (for premium subscribers only). This analysis remains valid, but I will add three daily charts below. The second chart below shows the Euro Index ($XEU) breaking down in May and holding this support break after a decline in July. A break down in the Euro is positive for the Dollar because the Euro accounts for 57% of the Dollar Index ($USD). The first chart shows Spot Gold ($GOLD) falling back to its support zone with a sharp decline the last two days. A close below 1290 would negate the June breakout. The last chart shows the 10-YR Treasury Yield ($TNX) firming at support in the 25 area (2.5%). The trend, however, remains down and a break above 27 is needed to reverse this downtrend.

 

gold_price_daily_chart_15_July_2014

 

 

euro_price_daily_chart_15_July_2014

 

 

treasuries_daily_chart_15_July_2014

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