An impressive session for the dollar considering stocks were shellacked again and gold finally managed a bounce. Rallies continue to be sold into with waiting sellers toward 1.4760/90. Stops will obviously build above the 1.4800 level now, but as the old sod goes, the trend is your friend, so it makes good sense to stick with shorts with a trailing stop, especially as rally prove so shallow.
ZEW is set for release tomorrow and should confirm weakness seen elsewhere in Eurozone data. US housing starts and permits will remain weak, but that’s a good thing as the market still has to work off a huge overhang of unsold homes. Makes no sense to build what can’t be sold.
