Here, at last, we can find an early sign. Bearish head and shoulder with 1.2950 as target: achieved. The weekly bearish engulfing pattern is another indication of the strength of the U.S. dollar
During next week: the assault to the neck line of 1.2770; in case this level will not resist, EurUsd is going to fall down to 1.20.
Economy is recovering, job numbers doing great, a little better and fear of Bernanke stopping the printing could come and market probably betting on this.
when did this happen? I can't bet on that yet. Market needs to see more numbers, dollar index still held. Just short term bets for me anyway.
I believe that the dollar will strengthen only for a bet of the market at the end of the QE (in fact gold and bonds have fallen) and this is logical. But why is the stock market not falling??
Seems like they are jumping the gun but all this USD sentiment hitting the wires what can you do. Still need data to follow through so let them get caught wrong and hit it heavy. Strong USD not bad for US equities, bad for commodities. equities fall back now of course. sell at the *end* of May and take an extended vacation...
If the weekly closure will be below the bearish engulfing pattern (1.2935), then weâll see the formation of a medium-term bearish signal.
when can we expect the assault on the jugular of EUR/USD to give this weekly bearish pattern a green light?
Rates are rising too quickly in Japan, and I think that the Bank of Japan will slow down the devaluation of Jpy. Short of EurJpy at 132, I think it's a good trade at the moment.