At least in the short term anyway? Remember, that based on my USD update from yesterday, I am still looking for a 5-6 month Intermediate Cycle Low (ICL) in the USD.  The Dollar has rallied hard off yesterdays low and as you would expect, the EURO is showing signs of topping here.

I have taken a trade in shorting the EURO with the EUO ETF but have not yet made this a portfolio trade as it is risky here but here are some charts on both the EURO ($XEU) and EUO.

My first three charts are on the EURO ($XEU). The first is close up showing what looks like an early top on day 8.  The second is a one year daily and the third, an 11 Year weekly showing that it is struggling at the 200wma. My last chart is a USD 1+ year weekly showing the strong two day bounce that recaptured the 200wma so we may well be witnessing the long awaited Intermediate Low (ICL) I have been looking for.

My last two charts are on the EUO ETF that shorts the EURO.

Talk about catching a falling knife… Wish me luck. 😉