The Euro is facing one of the most important price tests in the past 20-years, and what it does here, should have a large influence on the price of Gold and Silver weeks from now!
This chart looks at the Euro on a monthly basis, since the late 1990s. Line (1), which is the 1.20 level, has come into play numerous times as both support and resistance.
Since 2008, the Euro has been consistent about creating a series of lower highs and lower lows.
The Euro created a triple bottom from 2015 to 2016. Metals have done VERY well, once the Euro created a triple bottom from 2015 to 2016.
The rally from the 2020 lows, has the Euro testing line (1) and the falling channel at (2). Last month the Euro looks to have created a bearish reversal pattern, just under resistance.
Should the Euro turn weak and break support at (3), after kissing the underside of 20-year resistance at (2), odds favor that metals will struggle to move higher.
Gold and Silver bulls should pay unusually high attention to what the Euro does in the next couple of months. For sure weakness at (3) would be negative for metals.
Do keep this in mind, should the Euro accomplish a dual breakout at (2), the Euro would send a rare and long-awaited bullish message to Gold & Silver!