Euro, USD & CCI commodities...

The free sample NFTRH166 on the right side bar projected a support level for the euro (now broken) that needed to hold or else a 109 measured downside target would be activated.  As noted to subscribers last week, I neglected to add in another level of support, which the euro is now approaching per this chart.

USD has come to its projected resistance area, and CCI equally weighted commodities have bounced as directed.  If the euro cannot find support here, with its super bullish sentiment profile (sentiment is suicidal) then 109 is probably in the cards, along with a massively higher USD.  If it does find support, USD should correct around current resistance and commodities can continue upward short term.

Viewed another way, if euro 109 comes about, we will probably be looking at a continued decline in T bond yields with an Uncle Buck breakout.  i.e. renewed deflation hysterics.  If euro bounces, SPX could get the fuel it needs to finally hit 1340.

All of this is window dressing however to what I think will be the real play, coming later.

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