You must do the things you think you cannot do.

- Eleanor Roosevelt

Sunday, November 1, 2009


I wish I knew exactly what was going to happen with the EURUSD pair (wouldn't we all?), but such certainties are rarely, if at all, guaranteed in this world; and, if they are, they tend not to yield much of a return.

Looking at the EURUSD chart to the left, you can see the ambiguity of the situation. There is no perfect way to draw the lines, and depending on slight variations, the dollar could be heading towards greater strength or greater weakness.

Moving onto the UUP, things appear to be somewhat more conclusive, although we are still talking probabilities. When you have a downward wedge pattern like the one FINVIZ has so kindly highlighted with support and resistance lines, markets tend to move upward once the end of the wedge is reached.

That would be my bet, and I have seen such reversals take place before. I would even go so far as saying that the volume (at least in the UUP) more or less strengthens such an outlook.

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