What an amazing week, we listen to Ben's lectures telling the world that he will pull all stops if the economy is not moving into the right direction. The FED has a dual mandate and he relayed to the market that his priority is not Inflation at this stage. In result King Dollar moved 3 1/2 big figures (see (1)). Then all of a sudden we get the FOMC minutes relaying a more hawkish tone and King loses 3 big figures in 3 days. The amazing aspect is that the content of the minutues is older then Ben's speeches which everyone knows....so why not ignoring them and focus on the latest news. <= THIS IS NOT A RATIONAL MARKET, THIS IS A TRADER'S MARKET no matter what the news outlets tell you.
The overall position is ambivalent where we have the line in the sand around 1.30, where we see the Price MOMO and the Money Flow MOMO of the FXE flipped to the bearish side....
Bottom line: WATCH 1.30
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