Reversal in the dollar today?
Overnight, the EUR/USD made an overshoot of my upper expanding triangle line. I showed this chart a few days ago and this is it updated.
When I see an overshoot following a strong one-directional move such as the euro has enjoyed, I tend to get excited. Usually, the overshoot tells me the move is very likely exhausted and the next immediate move is counter-trend ( down). Then, I look for a point to trade short.
The GBP is weaker than the euro this morning and has broken an important trendline:
I have a superb upper tramline with some terrific PPPs – and the lower tramline is not too shabby, either, with many touch points.
The market has this morning made a significant break lower. I remain short.
The T-Bonds are also making a break lower this morning, and I am staying with my forecast of a few days ago – T-Bonds will be headed lower soon. I am looking for a short trade.
The Dow is in limbo this morning, but I still believe we shall see a rally up ahead – today sees the release of the US Jobless Claims, and tomorrow the Unemployment Report for September – the critical number for the Fed to make its pronouncements re QE.
I shall be looking for a long trade in the Dow – the Nasdaq remains in its uptrend.