Bullish on Euro and Gold

Based on the contracting, coil-consolidation type patterns carved out in the euro/dollar and in spot gold since the first week of May, those two markets right now are warning us to expect potentially powerful, bullish upside resolutions. This should propel the euro/dollar to 1.51-1.53 and spot gold prices to $1590-$1620.

As for spot silver, my sense is that the bloom is off of that rose and that it will manage to climb only to the 42.00 area during the run to new highs in the euro/dollar and in spot gold.

In any case, if my pattern work proves accurate, then some "unexpected" catalyst is approaching that will attract money flows into euros (out of dollars) as well as into gold. Thus, we are bullish on the CurrencyShares Euro ETF (FXE).

Furthermore, if my works proves accurate, then the larger commodity complex in general, and oil in particular (which is priced in dollars along with gold), should benefit significantly.

Despite today's surge in the SPDR Gold Shares (GLD), the equivalent upmove to the projection in spot gold is 160.00.

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