Euro vs. Dollar – Head and Shoulders Almost Complete

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Here we see the dollar, as represented by the Euro Trust ETF (AMEX: FXE), taking it’s largest 1-day plunge against the Euro in two months. The dollar selling / Euro buying took us right to the neckline of a 3-month head-and-shoulders-type formation (see chart). A close above $1.22 could mean a quick move to test $1.23. A close above 1.23 could signal the beginning of the more significant move down for the dollar I expect for 2006, likely against most other major currencies. See the continuation of this post for the Gold chart.


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Here we see gold, as represented by the Gold ETF (AMEX: GLD), at it’s highest level since the early 1980s, when the dollar slid, Gold rallied, inflation peaked, and so did interest rates. Not saying ALL those things are going to happen again, but something along those lines is likely in the works, especially with possibly the all time worst, most dishonest, irresponsible, and dangerous U.S. president leading the country right now. Cheers!

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