Don't Get Fooled Again – EUR Is Going North

Listen……….

The $dxy (or symbol:$usd) tracks/charts the U.S dollar against a “basket of currencies” where 57% of that basket is weighted EUR – and the remaining percentage is broken down as follows:

http://www.fxtrademaker.com/usdx.htm

Often… traders will watch this symbol, and make assumptions as to the dollars strength or weakness based on its movement.

BUT……………..

When looking at individual currencies independently – “against the U.S Dollar” one can see that this is by no means accurate – and in my opinion…..extremely misleading.

I see the $dxy at 80.05 presently ( up +0.14) – which would suggest dollar strength – right?………RIGHT?

Then why is my screen “so deep in the green” when I am short the U.S Dollar?

HMMMMMM……………

BECAUSE I AM SHORT THE DOLLAR AGAINST EVERYTHING UNDER THEN SUN….”OTHER” THAN THE EURO!

AUD ┬ákillin it……NZD killin it………CAD killin it.

So….You get it?

Don’t get fooled…the dollar is goin down….down……down.