With the USD weakness over the weekend we have seen the Euro push back to the high of the trend. With a strong down trend in place we believe this area strong one to sell from.
The US dollar is breaking down again as we work deeper into the European session today, a development that comes after a week of very strong US data failing to excite renewed selling of US treasuries (and therefore higher yields), which was always the key support for the US dollar in its run higher since basing at the very beginning of this year. A very strong session for Chinese equities in Asia overnight after an ugly period of weak sentiment has also likely provided a bit of extra energy into the mix for renewed USD bears, as Chinese regulators have weighed in on what the market has perceive as support for the troubled Huarong Asset Management Company.
With this Sell of having taken place we believe the move is now over the correction in line with the trend will begin.
The US dollar is breaking down again as we work deeper into the European session today, a development that comes after a week of very strong US data failing to excite renewed selling of US treasuries (and therefore higher yields), which was always the key support for the US dollar in its run higher since basing at the very beginning of this year. A very strong session for Chinese equities in Asia overnight after an ugly period of weak sentiment has also likely provided a bit of extra energy into the mix for renewed USD bears, as Chinese regulators have weighed in on what the market has perceive as support for the troubled Huarong Asset Management Company.
With this Sell of having taken place we believe the move is now over the correction in line with the trend will begin.