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The U.S. Dollar this morning finds itself at the same price as the week of 10/8/2011. Why is that week important? That happens to be the week the 500 index hits its fall low and the rally started. I could be wasting your time discussing the currencies these days, since they seem to have little to no impact on the markets for a good while.
With that said, I do feel that if support line (2) is taken out, the Dollar could decline a good percentage and odds would favor that risk assets would get a boast. A breakdown from this flag could really help risk assets, so do watch what the Dollar does around the 78 level.
I still feel the Usd is vitally important. Do you feel it would break a long way either side or only to the downside? I would think a break of 81.50 would be very significant with the nasdaq100, rut and european indices at big resistance levels.
EurUsd looks like it’s breaking out of a flag too, although a smaller one. From the behavior of the pair, it looks like there are going to be some tough days (weeks) ahead for our un-beloved uncle buck!!1