Tuesday, March 1, 2011

MOVEMENT IN THE DOLLAR/EURO

UUP is our dollar index proxy as the DI doesn't give me intraday volume information.

FXE-Euro Trust ETF
 60 min negative divergence-leading too!

 15 min leading negative divergence

 And th recent 5 min activity, Euro falling!

 FXE daily chart-hit resistance today and looks to be a failure of momentum opening the door to downside.

UUP-the Dollar index is weighted 50% by the Euro, so the Euro has the most effect on it and UUP

 UUP crossing resistance just recently on the daily chart

 30 min positive divergence-another downside head fake?

15 min positive divergence-usually the timeframe where we see reversals.

I'm not sure what the catalyst is here, but we do have some bullish movement in the dollar. Traditionally, the dollar has an inverse correlation with commodities, equities and especially oil.

No comments: