Spot Gold broke-out of a 3-week triangle to begin the week, triggering Tuesday's fresh record high. The pattern break-out projects a move to the 1050 region, where extreme overbought RSI levels could delay further upside potential . In the meantime, oversold (hourly/4-hourly studies) dips below the previous record high (1033) should be accumulated. Meanwhile, the US Dollar Index, which rejected at the 35-day exponential moving average last week, fell below the 10-day MA. A retest of the 76 handle (September 2008 & 2009 pivot) is now more than likely, unless the DXY can somehow reclaim the 10-day MA (now at 76.70). The EUR/USD has rebounded from last week's oversold RSI base and has surged through the formerly resistant 10-day MA. A key Fibonacci retracement at 1.4768 (78.6% of latest downleg) is the only viable resistance level ahead of the yearly high at 1.4847. The reaction at 1.4847 or 76.00 DXY will be the critical factor in determining whether the Greenback is amidst a potential bottoming process or merely beginning another bear campaign.
