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Gold In Euros And British Pounds

Published 02/07/2016, 01:28 AM
Updated 07/09/2023, 06:31 AM

10 Years Gold Price

When Priced in Euros, Gold is Likely to Put in a Squeaker New All-Time High

The long-term gold chart looks very different in euros and British pounds than it does in dollars.

In euros, gold is working on a megaphone right shoulder for a big head and shoulders top. That would usually mean a squeaker new all-time high.

Gold is just completing a megaphone at VWAP of the larger red right shoulder megaphone. It should put in a new high for that smaller megaphone, retrace to its VWAP, and then take off in a 5th wave melt-up for the new all-time high.

So if you’re long gold in euros, you may have to put up with a little more sideways price action, but then gold is likely to melt up to the red megaphone top and break out through it to put in a topping formation on its top.

Gold in Pounds

Gold in British Pounds is Forming a Much Tighter Megaphone Right Shoulder

Gold is putting in similar price action when priced in British pounds, but the right shoulder megaphone is a lot smaller and tighter. This megaphone needs a melt-up 5th wave to its top, but afterwards it’s likely to actually break out downwards.

Gold could also spend a prolonged period–even years–forming new interior megaphones across VWAP of the blue megaphone, ultimately forming a triangle right shoulder on the big H&S before breaking out downwards.

I would not want to be long gold when that H&S finally breaks out through its neckline.

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