The yellow horizontal line on the first chart above is a significant resistance area and we’re hugging that resistance line. However, there are no indications we’re setting up for a correction.
For all the pundit predictions of an imminent Dollar rally the FOREX market refuses to acquiesce and we’re seeing significant strength in the Euro. I’ve given up pinpointing when the big sell off in the Euro is going to occur and I’m staying away from the trade. The Euro, Yen and Dollar are in the “least ugly” beauty pageant. With the Bank of Japan announcing this week that they are finally going to get serious in fighting their two decade battle with deflation by printing trillions of Yen, the Euro comes out the winner with the least cratered face J.