We have a DOUBLE Monthly Bearish Reversal coming into play today for the Euro at 107.65. This seems to confirm we will see a drop to par. This is still placing pressure on the dollar and a rising dollar remains the confirmation of a deflationary trend in motion. Europe can lower the Euro, but this does not appear to be poised to “stimulate” the European economy. The contraction is far more than the proposed increase in money supply.
Here is a comment from Europe:
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Hi Marty,
For the past two months now, from across Europe including UK more and more bad news are coming in from friends (good people) who are either loosing their job and not finding something adequate or new at all, or (so far) successful entrepreneurs struggling now in their sector, or others who have been trying to sell their company but not getting this done, and so forth. Just the big corps seem still doing fine.
And these are the better months before 2015.75 arrives; that’s a rather grim outlook I can tell you..
In gold we have technical support at the 1163 level and we are trading at 1183 at this moment. A break back below this level will signal a revisit of the lows. Now most technical traders will start to look at the Uptrend Line in the mid $700 zone as a target. This remains to be seen, for it is a question of TIME and PRICE.
The Dow still has support in the 16500 level. As long as that area holds on a monthly closing basis, then we do not yet see a major end to the uptrend. A short-term correct will be possible later on, but this may still prove to be a buying opportunity.
