Monday, October 31, 2011

DXY Goal Post Trade Update

DXY is back between the goal posts. Was DXY breakdown last week a fakeout? Traders are scrambling due to JPY intervention and MF Global-driven risk-off. But really, there are rumblings in EU peripherals due to Greek 50% debt haircut deal. If I was one of the other PIIGS, I would also say "me too, please". EUR/USD finished its relentless stop hunting run exactly at confluence of 61.8% and 78.6% fibs of declines from 5/4 and 8/29 respectively. It does not get any more technical than that.   

I anticipated this DXY bounce last week. Obviously, I was early.

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