seems to be in a wedge
right now, and prices are currently testing a horizontal resistance level
at $1.112. I wrong wrong yesterday in thinking the dollar might bounce following the FOMC minutes (see the related idea on the USDOLLAR
below), but the wedge
here makes me think that shorting the euro
might end up a decent play today. I'll be watching this setup closely during the first hours of the European trading session for further information to support a bearish
stance today. Right now, any short position should warrant a stop above $1.113, which will theoretically allow for a risk/return ratio above 1:2 given that a downside reversal could lead to prices falling back to $1.10.