10/29 - SHORT EUR/USD POSITION ADJUSTED

US DOLLAR INDEX: The US Dollar surged to a fresh 2-year high against a basket of currencies on Tuesday before finding resistance at a key fibonacci retracement (78.6%) of the decline from the 2005 high to the 2008 low. A very distinguishable distribution pattern (Head & Shoulders) materialized while the EUR/USD was forming a double bottom. Together with over-extended daily readings, a reversal probed through the 10-day moving average for both the EUR/USD and US Dollar Index. Expect dollar strength while the 20-day moving average remains in-tact.

Strategy Summary: SHORT EUR/USD AT 1.4152 FOR 1.2445 (3rd TGT) ADJUSTED STOP at 1.3315

10/19 - SHORT EUR/USD (ADJUSTED STOP & TGT)

US DOLLAR INDEX: Expect Euro weakness against the Dollar while price-action remains contained by the 10-day & 20-day moving averages.


Strategy Summary: SHORT EUR/USD AT 1.4152 FOR 1.3315 (2nd TGT)
ADJUSTED STOP at 1.3555

10/1 - SHORT EUR/USD INITIATED

The EUR/USD is probing key long-term trend-line support in the 1.39-1.40 region. Although, there is a strong possibility of an immediate loss, it is possible that a large triange is forming (currently in wave B). Also note that the Usd/Chf is flirting to break major long-term trend-line resistance. Expect bearishness towards the EUR/USD while trading below the 10 & 20-day MA's.


Strategy Summary: SHORT EUR/USD AT 1.4152 FOR A 1.3900 1st TGT, STOP at 1.4296