Movement in Currencies

It's important to remember that the Euro has a positive correlation with the market, that's why today's positive divergence between the Euro and SPX was one of the deciding factors to go ahead and fill out the leveraged long position started today.

The $USD has an inverse relationship with the market, specifically stocks, Energy/oil and it use to be precious metals but those are more tied to inflation expectations now.

So again, the short term vs bigger picture is confirmed again in currencies, the Euro and the $USD.

 Short term the Euro shows an intraday 3 min positive divergence over nearly the last 3 days, you can see a positive divergence on the 3rd that gapped the Euro up and a negative on the 5th that sent it lower, these are shorter term trade signals, so near term Euro strength=near term market strength.

 Euro 5 min positive divergences, this last one is the largest, I don't doubt accumulation has been under way the last 3 days and that the move will surpass the average accumulated level-call it the median somewhere around $129 in the FXE or EUR/USD (1.29)

 The 10 min Euro divergence as they usually are seen, first a weaker relative positive (arrow) leading to a stronger leading positive (box).

 UUP, the $USD confirms the Euro's short term strength with a leading negative 3 min chart that has been negative this entire weak, so the underlying action is short term institutional selling in to dollar strength, most importantly though is confirmation of the Euro signals.

 The 5 min trend in the $USD also recently leading negative

 And the 10 min in a clear leading negative divergence, that's good confirmation among two different ETF's in multiple timeframes.

Now the big picture and why I want to short price strength...

 USD confirming the downtrend and moving to a leading positive divergence on the 4 hour chart, which matches other 4 hour market average charts we have seen,

The Euro 4 hour confirming the uptrend (as it does the opposite of the USD) and a leading negative divergence now, again confirmation for the bigger picture as well and it's not good for the market averages, maybe short term, but we are approaching the end game, I feel more confident about adding shorts in bulk on price strength for the first time since last May.