Beware the Euro
The vital technical support lies at the 1.13 level. The Euro has some support at the 1.03, 1.07, and 1.09 level. After that, we should see the Euro crack the par level. This now seems to be the goal to devalue the sovereign debt of member states.
Those who have claimed the Euro would hold and was here to stay are looking rather foolish if not politically-correct fools serving for mouth-pieces for the general public desperately trying to maintain confidence in Brussels.
BEWARE the Euro tomorrow
Can Gold Continue to Rise?
We need a closing ABOVE 1305 to keep gold neutral right now. Additional key resistance begins at 1310, 1319, 1321, and 1326. It may prove to be very difficult for gold to rise beyond this seasonal high in the face of a very strong dollar. Caution is the word that applies to gold right now.
Beware The British Pound
We warned that the British pound would also crack in the coming dollar rally. Here too, we see a serious decline remains open. A monthly closing below the 150 level will signal the break is underway. London real estate may get real cheap at last for Americans.
The deflation is Europe is massive. This will eventually stimulate the capital flows to the dollar. You can see today as the Euro declines, the US share market is rising moderately. We seem to be headed into the next two weeks that will be a period of rising stress.
The higher the dollar is driven, the more likely we will see the US economy turn down with 2015.75.