Last week sure was interesting.
What a development in EUR/USD and Gold.
I can not say for others, but it was very unexpected for me, even I was sure the EUR will decline to 1.3400, or even to 1.3390.
The decline in EUR to 1.3319 and Gold to $645 sure made me panic for 2-3 hours. However, lets see the technical picture:

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This week, we will begin with our favorite chart - USD index. Even Robert McHugh finaly "saw" the trendlines, and include them in his weekly report. We are now on the resistance level of the figure that looks like wedge. Now the dollar must go back to support, @ 81.

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Because, the USD index is dominated by EUR, and because XEU - euro index is dominated by USD, XEU shows the chart that is mirror/inverted of USD index. Wedge again, and EUR is near the support level. Now it will go up to the resistance @ ~140.

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The ratio of XEU:USD show a picture similar to (inverted) USD index. I put some more trendlines there, but will not comment them.

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Now, EUR/USD 1 day chart. Price is on the resistance level, on both long term raising support, and short term downtrend channel. EUR must raise. I say it will raise to 1.3520. But we will see.

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8 hours chart of EUR/USD, show the downtrend channel.
It also show "small" / "false" / "momentary" break of the support - this is clear. However, we will think that the break was momentary, and the support is not broken, because there was "imediately" recovery of price to be inside the channel.
Also, the long term support may was / is broken. This is not worry me, since I am not sure where is exactly this support.

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Conclusion is that there is not change in the technical view, and we will see a break on top of the triangle, and EUR/USD will go first to 1.3520 (which does not break any channel), then down, then up to 1.36-1.37-1.38...

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Now, Gold.
Gold is soo much like EUR (see below). The Dollar rally is the reason Gold to decline. But unlike EUR, it does not broke any channels (yet), and we may expect recovery soon. Now is the time to add to your Gold possitions, or if you do not have any - to buy some :-)


Here I give you "collage" of XEU:USD and Gold.

Note that time frames are different - Gold is from beginning of jan.2006, but XEU:USD is from Jun.2004.

I need to think about it how important is this similarity, and probably will write about it soon.