Shared the chart below with Premium Members 8 days ago, reflecting another “Bullish Falling wedge” has been created by the Euro and traders have established one of the largest short positions in years (lower left hand chart)
CLICK ON CHART TO ENLARGE
Falling wedges suggest higher prices are ahead two-thirds of the time. If the wedges are correct per a higher Euro, could a “short covering” rally take place, since the largest spread in years among traders, is at hand right now.
If the Euro does happen to be creating a “bullish falling wedge” does that mean the Dollar has to be creating a “Bearish Rising Wedge?” (see Dollar rising wedge here)
My strategy is called TB&M/(Tops, Bottoms and No Middles (see strategy details here) The “Power of the Pattern” attempts to find key exhaustion and reversal points.
Good TB&M ideas from the Power of the Pattern usually seem extreme at the time and usually requires and open mind. A Euro rally is NOT a given, yet if it does, it could have some legs due to how many global investors are short the Euro at this time.