Friday, June 25, 2010

Strange Day

FXE really pulled one out of the hat on Thursday, defying the downdraft while at the same time essentially conforming to the intraday cycle of the NYAD. The Rotator now has the FXE ranked in slot #1, a curious situation after Wednesday's action. Rather than waste a lot of time taxing my old feeble brain trying to figure where that rascally FXE is headed next I'll just employ risk management rule #1 and stand back until the technicals sort themselves out. I mentioned earlier in the week that FXE was showing divergence signals on daily and weekly bars and we may be seeing some resolution of that divergence at the present time. Meanwhile, I'm not going to step into traffic until the crosswalk signal flashes all clear.
The yen has touched the May highs again, a scenario that was also suggested earlier in the week and the technicals still look bullish. Ultimate upside FXY targets remain in the 112 range but it's going to take some work to get there.

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