USD/EUR: 3rd Support Test in Progress

I have made no secret of the fact that I expect the US dollar to rally, but now it is time for Uncle Buck to either shit or get off the pot.

The stance has not really hurt my recent market returns because I am taking sectors at their own face value technically and fundamentally. But it has eroded around the edges due to a previous short EM stance (loss booked) and current short Euro stance (ongoing, pending the chart below).

USD/EUR is right at the limiting support area, which is fine. But when you consider that when a support level (in this case, .86) is tested 3 times or more it tends to become weaker, you wonder ‘does the market know more than me?’

Actually, that is no wonder at all. The market knows way more than me, one of its tiniest little micro components. But anyway, USD/EUR needs to hold here or long-term support in the low .80s is going to get tested.

Side note: you can whip up these cool charts on this page at Biiwii, which show pre and post-market activity, unlike for example, my beloved stockcharts.com.

usd/eur

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