DOLLAR HITS NEW HIGHS AS EURO PLUNGES TO NEW LOWS...


DOLLAR HITS NEW HIGHS AS EURO PLUNGES TO NEW LOWS... 
After a bounce in stocks on Tuesday, the risk-off trade resumed on Wednesday with the US Dollar Fund (UUP)hitting a new 52-week high and the Euro Currency Trust (FXE) recording a new 52-week low. Chart 3 shows UUP breaking resistance in mid May and surging above its January high this week. With higher lows and higher highs since August, the dollar is clearly in a long-term uptrend. Chart 2 shows FXE breaking below its January lows last week and moving below 124 today. Even though the Euro is oversold, there are simply no signs of support and the ETF remains in a clear downtrend. The Euro is at the heart of the current risk-off movement and it will take a sustainable bounce to push investors into riskier assets. 

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