Fed's Sunday Surprise

The Fed cut the discount rate today instead of waiting all the way to Tuesday when they will most likely cut the overnight rate another half a point. Finally some are saying enough is enough. That's what we were saying at the end of last year when the Euro was only 1.25 of the dollar.

EURO GONE WILD

Not to be mistaken or associated with the all to well known similar oo-mox title with "wild" in its heading (guys, you all know what that is about from those late night info-mercials), the euro has now hit the target on a ascending triangle formation (as seen below.) It has run and made a 700 pip move and what a move it was.

Now that it has made the predicted move I am starting to see a possible pull back down to a support level. I am not sure if it will pull back to 1.4900 or 1.5000, but it may pull back to a 1.5200 if it does. Currently, anything trading against the dollar seems to be the best bet to trade and may be the case for a while to come. It is hard to see this because I think the Fed and the administration wants the dollar to stay down. I like to think there is a method to their madness but for now, my ferengi oo-mox is trading against the dollar for now.

~G