The chart of the US Dollar, $USD, traded by UUP, shows today’s massive fall from a head and shoulders pattern, to $84.53.

All currencies, with possibly the exception of the Yen, FXY, have now peaked out; and are in various stages of fluctuation. The Euro, FXE, is currently rallying with the strong European currencies, the Swiss Franc, FXF, and the British Pound Sterling, FXB; never the less, these currencies are only rallying; they will never ever reach their former highs.

The Euro, FXE, jumped higher with the strong European currencies, the Swiss Franc, FXF, and the British Pound Sterling, FXB.

The Swedish Krona, FXS, and the Brazilian Real, BZF, was drawn up as well; all on the Yen, FXY, popping yet higher.

FXE: 2.39%

FXF: 1.75%

FXS: 1.61%

FXB: 1.60% ..

BZF: 1.09% ..

FXY: 0.93% ..

The jump in the Euro, came partly from bullish trading, partly from being drawn higher with the strong European currencies, the Swiss Franc, FXF, and the British Pound Sterling, FXB, and partly from the call for strong economic governance coming from the EU Commission as reported in EurActiv article Brussels Tables New Economic Governance Plans. The European Commission yesterday (30 June) presented its latest proposal to strengthen the Stability and Growth Pact after the Greek crisis had exposed the weaknesses of the EU’s budgetary surveillance system, proposing four policy enhancements.

ETF gainers included: Spain, EWP, 4.7%, Italy, EWI, 2.9%, Austria, EWO, 2.6%, European shares, FEZ, 2.0%.

If the currency traders take the Yen, FXY, lower, the Euro, FXE, will likely continue strongly and world stocks, ACWI, and the S&P would likely rise.

Gold, $GOLD, despite today’s fall, and potential to fall to 1090, has clearly arisen as the sovereign currency and storehouse of wealth; its true worth is in the protection it affords in black swan events such as the possible collapse of British Petroleum, BP as written about by Gordon T Long in ZeroHedge Article Sultans Of Swap: BP Potentially More Devastating than Lehman .