It's too early to tell, but it will be interesting to see how this plays out. The only thing that I can say is that according to my system, the right trade is to continue to hold the long Euro position.
TLT
Thursday, July 15, 2010
Eur/Usd Update
The Euro has continued to rally..the only question now is how long will it last? I don't know and will look to price action to get me out of my current long position. Here's the current daily chart:
One thing that I find interesting about the Euro right now is that the correlation between the Dollar rising when the stock market declines seems to have been decoupled. For example, this morning when stocks slid more than 1%, the Euro rallied. What does this mean? It could mean that the currency market has merely changed it's relationship with stocks. It could also mean that the currency market is not worried about Europe anymore..the worry is with the US. Not a far fetched theory.
It's too early to tell, but it will be interesting to see how this plays out. The only thing that I can say is that according to my system, the right trade is to continue to hold the long Euro position.
TLT
It's too early to tell, but it will be interesting to see how this plays out. The only thing that I can say is that according to my system, the right trade is to continue to hold the long Euro position.
TLT
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