I'm watching the Gold ETF ($GLD) against major currency ETFs ($UUP-US Dollar, $FXE-Euro, $FXB-British Pound, $FXA-Aussie, $FXC-Canada, $FXY-Yen), especially GLD/UUP with the recent flight from the Euro.  GLD/UUP is sitting on 2008 support in a symmetrical triangle.  Get ready for Gold/US Dollar divergence or a tandem dance (direction same, speed different).  GLD/UUP RSI (relative strength index) is at 52.

The GLD/FXE ratio is the most interesting chart because it formed a perfect ascending channel.  GLD/FXE just hit the top of the 3 year channel, so it either goes parabolic or the ratio narrows a bit. GLD/FXY looks similar to the GLD/Dollar relationship, using the 2008 high as floor support, but Gold/Yen also formed an ascending channel throughout 2009.  GLD/FXB looks similar to FXE but hasn't hit the top of the channel yet.  Last but not least, even the commodity currencies (FXA, FXC) took a hit against GLD recently.  Looks like a mini 2008 carry trade unwind redux combined with interest rate speculation and economic data? For Aussie [rates unchanged tonight at 4.5%, Australian article on AUD, building permits fall 14% in April, retail sales up].  I REALLY want to know the ultimate fate of GLD/UUP.  I just posted a video with David Rosenberg saying gold could hit 3,000.

GLD:UUP (Gold ETF/US Dollar ETF) - StockCharts.com

GLD:FXE (Gold/Euro ETF)

GLD/FXY (Gold/Japanese Yen ETF)

GLD/FXB (Gold/British Pound)

GLD/FXC (Gold/Canada)

GLD/FXA (Gold/Aussie Dollar)