Here we see a chart of the first-ever currency ETF (exchange traded fund), the Euro Currency Trust (AMEX: FXE). The chart shows the entire trading history of the FXE. The short green line pierced by today’s candlestick is the 50-day EMA (exponential moving average), which most of you know by now is one of my favorite tools. Today’s move reflects the 1.1% beating the dollar took vs. the Euro after the ECB (European Central Bank) raised its overnight rate and boosted its inflation outlook.
Note, this “news” is not so important…
…as the technical move you see in the chart of the dollar vs. just about any major currency.
Now on to the title of this post, which is a reference to my December 15, 2005 posting titled “GONG! Turning Point for the U.S. Dollar.” Read that and my February 24, 2006 posting “Taking the Pulse of America (Income, Assets, Liabilities, Net Worth)” for an introduction of why I am negative on the dollar, and yes, have a few short dollar positions as we speak. Cheers!