Follow Up on the Euro vs. the $USD

Last Thursday, I posted CURRENCY and showed charts of FXE and the dollar via UUP. I thought what we were seeing in the Euro was a bounce only, not a trend reversal.

Here's the current FXE chart

That very day, was the end of the bounce for the Euro as Friday it reversed course.

While the Euro/Dollar pair will always trade against each other, the more important issue I'm starting to focus in on is whether the dollar actually has any real strength. The daily chart looks bullish and the dollar is up against the euro, but the question I'll be looking for an answer to in the coming days is, "Is this a matter of dollar strength or the dollar just being the stronger of two weak currencies?"

The matter of the dollar itself-irregardless of the Euro, has broad implications over many investment choices in a majority of asset classes. Keep your eye out for updates on the situation as it develops and don't confuse a dollar that is stronger then the Euro with a strong dollar.