Monday, 28 March 2011

USD VS EUR !!!! Will the Dollar Crash ????

Pls see chart for DXY - US Dollar Index




Technically speaking DXY is just bouncing off its low.
It has just tried to bounce off its long term upward sloping trend line and also the RED horizontal line ie the previous low.


You can also see the wedge formation - in this case it is downward sloping - hence a bullish sign for DXY.


I would want to be long DXY - which could also mean short RISKY ASSETS


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Pls see chart for EUR below




We are at a similar juncture here for the EUR / USD.


It faces resistance from the downward sloping long term trend line.
It also faces resistance from its previous high - 1.4287
Also you can the rising wedge - in this case upward sloping so the likely outcome is bearish for EUR


I would want to be short EUR from here.
Let us see how it pans out in the coming days/weeks.





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