US Dollar Index and Spread and EUR/USD Daily and Positioning...

We suspect Wave B is complete at the 93.82 low, which interestingly was a test of the 200-day moving average. We have a series of 1-2s setting up for an impulse rally toward 100-102. Note in the second chart below, the continued widening 2-year yield spread favoring the US over the Eurozone; at some point this may matter again.

111618 dollar index.png

2-year Spread Eurozone-United States vs. EUR/USD….

111618 spread eur and us.png

And interestingly, there isn’t much in the way of euro positioning, as measured by open interest in Euro futures traded on the Chicago Mercantile Exchange. Though sentiment is a bit negative, nothing to write home about. It meas, a swing in sentiment, one way or the other could bring in a bunch of buying or selling power…

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