Gold/Euro - Cup and Handle (continuation pattern)
From a subscriber this morning:
"Hello Gary, as a reader from Germany I appreciate your work a lot because we are a country without precious metals companies, experience and therefore little interest in this complex. I live in the Euro-Zone and therefore I would be very much interested in your view about Gold measured in Euro. Thank you very much in advance, --A"
Well, thank you very much 'A'. Had you not mailed this morning, I would not have taken a look at this compelling picture of gold-euro today. Aside from what I consider to be bullish fundamentals for gold in all major currencies, even as gold takes a much needed breather in USD, it looks technically compelling in Uncle Buck's chief competition in the toilet paper sweepstakes, the euro.
The chart shows a textbook Cup & Handle, complete with the right side high of late November, '09 having exceeded the February, '09 high. I always like to see the right side (most recent) higher then the left (previous high) as this implies momentum and allows for a higher measured target, which in this case would be around 10 if and when the handle breaks consolidation to the upside. I say if because we do not try to predict, but rather show the probabilities. The probabilities, both fundamentally and technically say 'GOLD GOING WELL HIGHER IN EURO'.
As a side note to all subscribers, if there is anything in your particular area of interest you would like to see highlighted in NFTRH, let me know and I'll at least try to see if it can work with the letter, or at least with the blog. I can get a little US-centric after all, from my vantage point within the belly of the Ponzi finance beast.