A Quick Euro Update

One of the forces behind the recent strength in gold stocks has been a rising Euro.  This is because a rising Euro puts pressure on the US Dollar, which bolsters gold.  At this moment, the weekly Euro chart is at an interesting juncture.  

As shown below, the Euro is at the apex of an ascending triangle.  This means that it must break support or resistance within the next couple weeks.  The direction of this breakout will determine the future course of gold prices.





For a combination of technical and fundamental reasons, I feel that the breakout will be on the upside for the Euro.  One event that may have a large impact on currency values will be when The Fed meets on September 18th.  

Some analysts believe that they will cut rates by a quarter point or a half point, but some believe that they may cut rates by three quarters of a point.  That would certainly give the Euro some direction.