Wednesday, February 10, 2010

Euro Sell-off

Click for a larger image

First, note the market is in a down (A), up (B), down (C) pattern.

Prices formed a bear market pennant pattern at D.

Note the numerous gaps lower (E) throughout the chart.

All of this has occurred as the dollar as risen. The underlying fundamental reason for this change is the Greece situation. Because of that, the US dollar is viewed as a safe haven at the euro's expense.