UUP/FXE UPDATE

I've suspected the recent breakdown in UUP (proxy for the US Dollar) and the breakout for FXE (Euro ETF) have been false moves. One thing about false moves, they create opportunities to make a fast buch as they move in the other direction quickly once they are established as false. The reason why? The traders who bought the false breakout are at a loss and their selling creates a snowball effect. In the case of a false breakdown, the shorts are at a loss when price recovers, their covering creates a snowball effect. So this is a  possible trade you may want to keep an eye on.

 UUP with a bullish wedge and a base.

Here's what I suspect to be false breakdowns in the consolidation portion of the bigger pattern, once price passes the red trendline, it should move pretty fast.

FXE

 FXE showing a bearish ascending wedge and what I suspect may be a false upside breakout in the green box.

 This 15 min chart shows an interesting function of how the market works in a range. Note the accumulation, then the move up, distribution then the move down. Where the question mark is I believe is when we had the ridiculous surprise confidence numbers out of europe on the day after Steve Jobs leave of absence was reported, they were suspicious then ad now. Right now, we have a negative divergence.

looking closer at a 10 min chart, FXE's negative divergence is more pronounced. Now, we just need price confirmation and there should be a decent swing trade is either stock, UUP long or FXE short.