Heading into the Bernanke Speech at Jackson Hole today the US Dollar Index is poised to breakdown lower and the euro is set up for an upside break out. What could Bernanke say that would set up these two charts they way they are? Nothing. This is all about Europe. The euro chart below is ready to pop over 1.2555 with a target of 1.2770. This would put it over the "C" and make a higher high. Very bullish. And the US Dollar Index is consolidating in a bear flag at 81.24 with a Measured Move lower to 79.90, back into the consolidation zone it broke out of to begin the move higher. 
A weakening dollar and strengthening euro do not foretell of Bernanke QE3, or do they? All along the long-term macro picture has been that QE will raise asset prices by raising inflation, debasing the currency, it just has not been happening yet. Perhaps the Dollar Index is focusing on the Bernanke with the assumption that Draghi will fix the euro. I guess we will have to listen to Ben AND see what Super Mario has up his sleeve after all.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Euro And Dollar Are Focused On Draghi Not Bernanke
Published 08/31/2012, 09:24 AM
Updated 05/14/2017, 06:45 AM
Euro And Dollar Are Focused On Draghi Not Bernanke
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