The Black Hole

Alright, despite the title nothing kinky this time – some folks seem to have taken offense to the kinky bear I posted this morning. Folks – it’s a teddy with a pouch in the front – let’s not overreact please. Last time I checked it was the 21st century. Besides, I have been posting scantily clad women here since the inception of this blog – ask yourself: which is really more offensive? 😉

I see excessive violence on television all day, guns galore and people being beat to a pulp on late afternoon shows. But show a half a booby or teddy bear with a vagina pouch in the front and the Spanish Inquisition is coming after you.

Anyway, not an argument you can win, so we’re moving on…

Seems like ole’ bucky just can’t find a floor – is it turning into the black hole of all currencies? Here’s what I see on the horizon for both the DXY and EUR/USD.

The DXY kept dropping – which is what I suggested over on the Slope a few days ago. Always remember – currencies stay in their trend until they don’t. It takes a significant reversal to stop a trend in its track. Anyway, next stop is the 78.22 mark – considering that we are probably at 3% Dollar bulls when that is being touched it’s not a bad place for a handful of long positions – after we see a bottoming candle preferably.

Similarly the Euro pushed near 1.36 (as suggested – cough cough) where we’ll probably see some resistance. But whether or not this is the top is still questionable. For starters I would like to see a divergence on that stochastic and drop through the 80% mark that actually sticks. None of that happening just yet, so don’t step in front of a speeding bus.

Cheers,

Mole