Posted by: rp on the 28th of Dec 2011 at 10:09 pm
Title: $USD/$DXO/EURO
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EUR/USD has now hit that key support level (intermediate target, not final target) that i’ve been posting for months now and the $USD/$DXO recently hit it’s intermediate target and turned down hard off it. both are now at key trendlines, which basically make up wedges within the larger uptrend patterns/trendlines. with both at the key levels and clear divergences in place on both, i would respect a break of those trendlines as it could lead to a significant rally in the EURO (drop in the $USD) causing a rally in equities.
on the flip-side, if these patterns do not play out or break out and quickly fail, that would be uber bearish and could usher in a nice sell-off in equities. definitely some key charts to watch IMO.
