The developing technical set-up in the Euro-$ could have extremely bullish potential largely because the pattern since last October can be construed as a double bottom (Oct-Mar) followed by an initial upmove from 1.2450 to 1.3735, followed by a pullback into the April 22 low that was contained ABOVE the double bottom lows. And then, during the last two weeks, another rally has emerged that is pushing up against key resistance at 1.3680-1.3735 - as the price structure climbs above its 50 and 20 DMA¹s ahead of its upside breakout!
The vast majority of my work argues for an upside breakout for the Euro above 1.3735, on the way to 1.4500-1.4800, which should put a bid under gold (the GLD), silver (SLV), oil (USO) and many other commodities as well. The ³reflection trade² continues perhaps now with the help of a falling dollar, too.
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