Euro/Dollar Follow up

Yesterday I posted this update on the pair  I was puzzled, but the charts seemed to indicate that the Euro would fall and the dollar (UUP) would rise, that's happened today even though the US governemnt looks set for a shut down on Friday as the administration has said it will not sign any "stop-gap" bills to keep governement functioning for awhile longer while the budget for 2011, which was supposed to have been complete in October of last year, is negotiated. It seems no progress has been made, Obama seems that he'll stand his ground on the stop gap measures and there's less then 33 hours left to get something through Congress and signed by the president before government shuts down in many respects at midnight Friday.

Still, the charts indicated some strength in the dollar and weakness in the Euro, of course Portugal seeking a bailout (the 3rd PIIGS to do so) apparently is being taken as more of a threat.

Here's what we have on the pair as of now.

FXE

 FXE's drop today and the important line of support ( a break below that red trendline and I'd consider shorting FXE). There's also been some big volume today, once on the open and later at intraday support.

 The 3C hourly chart with Stoch/RSI divergence signal mentioned several times today and profiled last night.

 The 30 min chart continues to slide down into a leading negative divergence.

 And the important 15 min chart has been divergence since before the breakout suggesting a false move, which was also suggested yesterday based on the actual price movement or lack of (see yesterday's post linked at the top of this post).

 There was a 1 min positive divergence, I think right around the intraday support I mentioned above in connection with the volume spike and there's a very small hint of a positive divergence now. Keep in mind this is a 1 min chart and not very influential in the bigger picture.

UUP

 UUP's 60 min 3C positive divergence as well as the  Stoch/RSI reversal signal.


 30 min 3C leading positive divergence, again, just the opposite of the Euro (FXE) which was negative before the breakout, this was positive before the breakdown.

 The 15 min 3C chart in a positive leading divergence

 10 min also a positive leading divergence.

And the 1 min chart shows a small negative divergence at the same time FXE showed a positive one, but the difference is that UUP also has a positive divergence into the end of the day. All in all, I wouldn't be too concerned with the 1 min chart or any choppy moves, it's the longer term trend charts that interest me.