Long Dollar vs Short Euro charts

It’s interesting to note that while the US Dollar futures contract broke clearly under its support trendline yesterday…

 

The 2x short Euro ETF (EUO), which is by nature of the Euro’s relationship with the Dollar a roundabout way of betting long the Dollar, has not yet broken under its support trendline.  What does it mean?  I have no idea.  Probably nothing.  For me, as someone who’s long EUO, it makes for an interesting decision.  Do I look at Dollar weakness and close the position as a precaution?  Or do I stick around and wait to see EUO break down as well.  I think the latter.  Either way, it’s an interesting divergence.

 

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: