Here is the Eurodollar on the one week chart. It is overbought on stochastic and RSI. On the daily chart, Stoch and RSI seem to be showing some room for the possibility of a continued uptrend, but I do not believe that it is sustainable for very long. The pair is retesting major resistance that it has recently broken, and I do not expect it to break far beyond that level (marked by the thick red horizontal line. I could be very wrong, and as the Euro is the second most liquid pair, increased demand as a result of capital fleeing from other volatile markets could very well drive both the Dollar and the Euro to do surprising things. Even so, I consider this an opportunity to to enter a long-term short trade at attractive prices and hold it down. Happy Hunting Everyone.
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Just a follow-up thought for all of you -- The U.S. Government has recently been warning Americans about travelling overseas and especially to Europe. Well, if American travellers stop SELLING their dollars in order to buy Euros, and then they stop buying Euros cause they're not travelling, that's a huge source of day-to-day liquidity shriveled up and dead, it's a double whammy, a big old right hand on square on the Euro's chin like McGregor is going to get from Mayweather. Ugh, I can almost taste Friday, Keep Hunting Everyone.
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Did I not predict the short-term pop??? HEED MY WARNING: Euro WILL fall, I think it will go BELOW 1:1 RATIO. If you made money on the long trade, it might be time to switch sides. Blessings.
