Eye on Euro and Gold

Well, wouldn't we all like to know what new ECB head Draghi is thinking about Mr. Market's response to his "cheap money give-away" right about now.

EUR/USD has plunged from 1.3200 to 1.3030/40, which has dragged down all the sympathetic and synchronized global equity and commodity markets too -- all in the last two hours or so!

No worries, he is probably on the phone right now with Ben Bernanke, who has much more expertise on the subject. In any case, let's watch with interest if EUR/USD is able to hold support at 1.3000/20 and claw its way back above 1.3080-1.3100 in an effort to stabilize.

This will impact the SPDR Gold Shares (GLD) and gold prices, which must hold $1604/00 to avert likely downside acceleration that revisits the $1580/60 lows.