I just bid on the dollar. I mean someone has to, right? Sentiment is and has been at extremes. We're not quite to the point where Jay-Z is flashing 500 Euro bills in music videos like in late 2007 (Well, are we? I guess I wouldn't know), but everyone seems convinced the dollar is worthless. And it's hard to argue with that -- commodity inflation is very real even if core isn't. But foreign exchange is all relative, and I have a hard time buying Europe's strength. Remember, the Euro is 57% of the Dollar Index, and their problems are very real.
We're about $.07 away from the 2009 low. I figured that support was worth a bid.
And these volatile moves within an expanding wedge appear to be toppy for the Euro. We've also got a five wave move and a nice divergence on both the hourly and daily charts, so the Euro has a lot of wood to chop if it wants to push the dollar materially through the 2009 lows.
