Gold has risen so far near 53$ today, but AUD & EUR have failed to make highs against US Dollar. It is not a divergence of Gold with EUR & AUD to go long against US Dollar. So, be cautious in placing long EUR/USD or AUD/USD or USD/CHF short. Gold is in actual bull mood today due to money supply increased drastically by ECB, RBA & Fed.

Following charts are Gold against EUR, Gold/AUD, Gold/JPY

I am really not expecting for GOLD to break current weekly trend line support. Therefore AUD & EUR to remain more sideways instead of keep falling further. EUR may fall further more to 1.3850 by looking @ support area. Keep watching Fundamentals...

This 480 minuntes chart has 3 month EURODOLLAR interest rate, GERMAN BUND & EUR/USD. Currenly we are seeing divergence in EuroDollar Interest Rate & EUR/USD rate.
There is also technical RSI divergence is happening on daily EUR/USD & AUD/USD.

For further research on EUR, US Dollar & Gold, I would recommend to look @ Paul Van Eden
http://watch.bnn.ca/trading-day/august-2008/trading-day-august-19-2008/#clip84424EUR/USD
AUD/USD

These are charts of EUR/USD, GOLD & AUD/USD. They all are testing weekly Trendline. If you are long term CARRY TRADE investor, stay alert for Long position on Aussie & Euro.

Note: Red price boxes are support & resistance levels.

This is chart of US Dollar Index (daily). As you can see, it has broken short term channel, but immediately after that there are two important trend line levels. You might hear & read in main stream media that there is a shift in Greenback sentiment, but to me there cannot be US Dollar bull until it breaks these two shown barriers. This is just a short term bull for US dollar by looking @ this chart.
This second chart (daily) is about currency futures comparison. So far, we have seen lower highs in JPY & CHF futures, but not in AUD & EUR futures. And on US Dollar, there isn't higher high yet, therefore it is hard to tell that medium-longer term bearish US Dollar sentiment has shifted to bull.This 3rd chart is GOLD/USD daily chart. It has made lower high, but it's still holding thick brown trend line. I am not expecting US Dollar bull, if GOLD reverses from here.

Conclusion: US Dollar is right now at very important level of make or break, but no clear
signals yet. Fundamentals for US economy are still very weak. Europeans are
slowing down (German Factories), but AUD is still solid. However EUR & NZD are
dragging AUD down. Friday's COT report might show some interesting sentiment
for next week. Stay Tuned...

Long AUD/USD update @ 8:34pm Aug 7th, 08

Entry: 0.9072
Target: 0.9221
Stop/Loss: 0.8980

Result: -108 pips
Stopped out.

Why this happened?
I went away from AUD-GOLD-EUR system & just thought of oversold AUDUSD.

In comparison chart analysis post on July 16th I had mentioned about EUR-USD-AUD trades.
AUD/USD position was already closed with in & out +89 pips gain.

Now it's time to talk about EUR/USD & EUR/AUD.

EUR/USD has reached the target @ 1.5467 this morning from decided entry @ 1.5861(July 16th). But EUR/USD position was on opposite side of hedging strategy, therefore gain was -394 pips.
But EUR/AUD(July 16th) was in positive side of hedging with +541 pips gain.
Total ended up with +236 pips gain. There were no stop/loss placed since all positions were hedged. All positions are now closed since the philosophy is "to always leave some tips on table."

Click here to see July 16th Price & Trend Analysis for AUD/USD

Current AUD/USD daily time frame.

AUD/USDEUR/AUD

EUR/USDComparison