Something really did break this week, but it wasn’t the dollar, it was the euro. And below 340, which was a barrier for more than 2 decades, there was no support for bulls. It was a one-way street until friday, when London did a final bearish dump, only to find some buyers below 100. I wouldn’t sell this at these levels…first I would like to see a re-test of the longterm support at 340, or even 340-400. If the market can go up there and fails to hold above, bears should take over again and re-test the lows. If that area breaks to the upside and keeps holding as support again, 550-600 will be my bullish target. The bullish divergence on daily chart, along with the buyers below 100, give EU some hope for a bullish run next week. We have no big events planned, but the week after that is ECB and the week after that is FED. So next week should be more technical, without any more shocks, hopefully.
