The Euro

In yesterday's post I mentioned how we see the strange effect of divergences in the currency ETFs like the Euro or USD and no matter what happens overnight, the divergences tend to be fulfilled, this is even more amazing, over a weekend and 2 days of the market being closed the Euro has fulfilled, or at least started to, the positive divergences from last Friday and last week! So far this never or very rarely fails, talk about a market that is controlled in these cycles! If this happened once in a while I'd be skeptical, but I can't remember the last time it failed.

By the way, a strong Euro means a weaker dollar usually, which means a stronger stock market.

 The near term 2 min leading positive divergence from Friday in the Euro/FXE, this morning it is hit right on the nose at confirmation!

 The 5 min Euro/FXE leading positive divergence from Friday, also hit exactly at confirmation in intraday trade.

 What  may be more telling and interesting is backing out and scaling the divergences to trend from intraday and you can see the 2 min still has a huge leading positive component that the Euro could or should catch up yo, this is positive 90% of the time for risk assets like stocks.


The same thing is seen on the 5 min Euro/FXE chart when scaled beyond intraday!