Last week the US Dollar Index completed an A-B-C correction, highlighting a Head & Shoulders top. CFTC COT (Commitment of Traders) data confirmed a substantial reduction in speculative long Dollar positions and judging by daily increases in FX future volume and open interest, big speculators are piling into the Euro. Today's continued weakness is nearing the 100-day MA, but should be temporarily supported by 82.13, where a key 50% retracement level and a 1.618 equality projection lie. Expect weakness towards the 81 handle (H&S projection) while price-action remains below the 10-day & 20-day SMA.
Strategy Summary: RE-BUY EUR/USD AT 1.3370 FOR 1.3868 (TGT), STOP AT (1.3312)
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