On 1/17, Standard & Poors down graded European debt and the “Power of the Pattern” was suggesting this could be good for Europe and the Euro in the short-term. (see post here)  

At the same time the U.S. Dollar was forming a bearish rising wedge up against resistance, suggesting a two-thirds chance that the Dollar would reject higher prices and move lower. (see post here)  

The 4-pack below reflects what has happened to the Euro since the downgrade and the Dollar since it hit the top of the bearish rising wedge at resistance.


Since the downgrade took place the Euro is up around 4%. Since the rejection post/top of the rising wedge, U.S. Dollar is down around 3%


If you read the word Racecar from “Right to Left” what do you get?  The same word! 

The Euro hit a short-term low as the downgrade was being announced.  This is a prime example that when a story gets a little too popular in the news you have a choice….go with the popular story of the day or look at it in the opposite direction.

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