I am warming up to the idea that the US Dollar is beginning a bottoming process ! I posted two days ago that USO (Oil ETF) was in the early stages of a topping process : (Click here) . Oil and the US Dollar are inversely related until now!
Concerning FXE (Euro ETF) ,I believe that it is starting to top out ! FXE has little upside potential from here.The Euro will top in the same manner as USO (Oil prices) will ! The process could take a little while (few weeks to a couple of months)!
Looking at the chart of FXE (Euro) you can notice how the upside potential is getting narrower by the day! The Euro is still stuck in this huge triangle (consolidation pattern) that I have anticipated on december 19th 2008 (Click here) ! I still believe that this triangle will ultimately resolve to the downside,which also would be bearish longer term for equities and oil prices for end of 2009 and 2010 !
If you want to trade the Euro with double long and short ETF's here are the possibilities :
EUO (Double short FXE) ; ULE (Double long FXE)
I think that now is the time to accumulate some EUO !
