TTT Updated Commentary on US Dollar and Euro

In early December we wrote a blog titled "US Dollar Due To Rally Imminently" and offered charts showing what we considered to be "obvious speculative trades implied by these charts".  The trendlines we drew proved exact, and UUP is up 16% since then while DRR is up 59%.

At the time US Dollar sentiment was totally bearish and we were the only commentators advising to go long the US Dollar and short the Euro.  Now these trades are very crowded, and as always we are nervous when the masses are on the same side of a trade as us, thus while we remain longer-term US Dollar bulls and Euro bears, we believe an intermediate-term reversal in both is imminent.

Speculators may consider the purchase of URR, the Double Long Euro ETN, with prudent protective stops in place, if wishing to attempt to profit from a possible Euro rebound in the near or intermediate term.