I recently did a chart on the DXY showing how its still bearish on longer time frames despite the recent run up it has seen on shorter time frames.
If we flip and look at the EURO, it is also agreeing with this sentiment as it has seen a bounce off a key support level after breaking a MULTI-YEAR resistance line in November that could now flip as support.
If this idea holds up, look for a massive rally in the EURO where the first true level of resistance is not found until 1.25.
Should this be the case, expect a run up in the PESO, YEN, RUBLE and a multitude of other foreign exchange currencies vs the US dollar that could last months and possibly years.
If we flip and look at the EURO, it is also agreeing with this sentiment as it has seen a bounce off a key support level after breaking a MULTI-YEAR resistance line in November that could now flip as support.
If this idea holds up, look for a massive rally in the EURO where the first true level of resistance is not found until 1.25.
Should this be the case, expect a run up in the PESO, YEN, RUBLE and a multitude of other foreign exchange currencies vs the US dollar that could last months and possibly years.
