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The US Dollar Index had a negative session on Wednesday as the trigger for sell positions that we have been talking about was approached. We are currently sitting just above the 79 handle, and as such a move below that would certainly be a good sell signal for a market that is in a long-term cyclical bear position.
We believe that the 75 handle will eventually be tested, but as per usual there will be headlines that push people back into the US dollar. Once we clear the 78.50 level, we should be going through all vestiges of support at that point in time. As for buying this market, we see actually no reason to do so at this moment.