€$ & USDX

OK, This is all panning out as expected re this blog and the USD reversal although i have had my moments of doubt. The USDX is heading up and towards a second attempt at the 81.50 black CL
I was taken by surprise by the retracement from yesterday but it was nice and shallow and a tad under a .382% Fib RT from the second touch on the recent low pivot at 79.22 but almost bang on a perfect .382 Fib RT if taken from the previous (or Left Hand Side pivot) around 79.09
Now we are cruising upwards towards the next resistance level but the very nature of the 'W' or 'double bottom' formation we have seen means that price should rise in comparative relation to the speed it descended...in other words relatively sharply.I guess this would tie in with 'Action-Reaction' theory. So outlook for US$ is up as far as i /this blog is concerned regardless of bond yields, debt and other US fundamentals - Its simply a case of " if you think this is bad have a look over there" ie Europe. Fitch downgrading Ireland and not to mention Spain & Portugal and the German reluctance to stump €€€ for all the proflogate recent spending....enough of fundamentals... other people do the fundamentals much better so i rarely mention them.
I was fortunate to get up V early this morning to take my daughter to school (its a 2 hr round trip & in France the schools start at 8am!) and be in front of the screen at 6am. I entered a short trade on the warning line at 1.3313 based on long stochastic divergence and RSI/CCI and Maccy-d at that time with a 10pts stop above the previous high at 1.3322. Check out the indicators - but without the warning/reaction line it would not have been possible. Now go back to the DX chart and look at the thin pink RL line which is where the DX was at 6am (euro time/CET). I always leave important old forks & their RL's and this one has earned its keep. If you extend the RL out of the top of the pink fork you find a superb correlation between price and the extended RL and do not forget we were also at the .382 Fib RT level at 6am. The euro currently fell & is in oscillating wave mode and suspect it will go/break lower-sharply. For the trade setup for this formation see Tag1 Tag 2 Tag 3 but also do not forget there is a difference between the examples in the tags and this current situation as there is a RL (actually several RLs' all bunched together so i am wary) underneath the current undulating wave formation.
































These two small charts show the origins of the short € trade's ( see above) warning line fork (note the gap in the P1-p2 reaction swing).








And finally below the current DX from a MT broker who surprisingly offers the data feed