Well, the huge Sunday gaps (in green) erased all the bullish news (tinted in teal) for two weeks in a row. The question becomes: will this week continue to be a repeat of last week (that is, the "fade the news" drop will be shaken off, and we'll simply move higher).
The broad trend suggests that it might. The Euro was steadily down for many weeks (red channel), but since the change of the month, we seem to have locked into a series of higher highs and higher lows. The widely-touted short interest on the Euro probably has a lot to do with the bullishness lately. I bought a large long position of FXE this morning as a hedge which, unlike crude oil, I hope will do its job.
With just nine days left to go in this quarter – two of which will be spent simply waiting for the FOMC – I confess I've lapsed into Let's Get This Over With mode. I guess I'm glad the Greek elections are behind us, but seriously, I will breathe (and trade) a lot easier after Wednesday.
