• Treasury yields find support • Euro signals a primary down-trend • Dollar continues to strengthen • Gold weakens

1. Gold weakens on Dollarstrength
By Colin Twiggs
July 31st, 2014 2:00 a.m. EDT (4:00 p.m. AEST)
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 Treasury yields find support
 Euro signals a primary down-trend
 Dollar continues to strengthen
 Gold weakens
Interest Rates and the Dollar
The yield on ten-year Treasury Notes recovered above 2.50 percent, suggesting that a bottom is forming. Follow-
through above 2.65 would strengthen the signal. Reversal below 2.40, however, would confirm a decline to 2.0
percent*.
* Target calculation: 2.50 - ( 3.00 - 2.50 ) = 2.00

2. The euro broke primary support at $1.35, signaling a primary decline with a target of $1.30*. Reversal of 13-week
Twiggs Momentum below zero confirms the down-trend. Recovery above $1.35 is unlikely, but would warn of a bear
trap.
* Target calculation: 1.35 - ( 1.40 - 1.35 ) = 1.30
The Dollar Index rallied on strong GDP figures, testing resistance at 81.50. Breakout is likely and would signal a
primary advance with a target of 84*. Recovery of 13-week Twiggs Momentum above zero indicates a primary up-
trend. Reversal below 80.50 is unlikely, but would warn of another test of primary support at 79.00.

3. * Target calculation: 81.50 - ( 81.50 - 79.00 ) = 84.00
Gold
Gold is testing support at $1295/$1300. Failure of support would warn of a primary down-trend. Breach of
$1240/$1250 would confirm. Recovery above $1350 is unlikely at present, but would indicate another test of
$1400/$1420. Reversal of 13-week Twiggs Momentum below zero would strengthen the bear signal, but oscillation
close to the zero line presently signals hesitancy.