Europe’s regressing to the 1930s, becoming a totalitarian “basket caseâ€, therefore, let’s bet against the Euro! The Primary Indicator says not so fast. The daily chart for the ProShares UltraShort (-2X) Euro EUO shows the Primary Indicator on a down leg close to zero.
And the chart for the Secondary Indicator shows it has crossed the zero line twice. Shorting the Euro at the moment is not the right move.
Just to be safe, let’s check the weekly chart for the Primary Indicator. It confirms the daily charts – don’t short the Euro yet. The Primary Indicator was at/above the critical high green line but made a lower high compared with the previous lower high at the end of April. If you check a price chart of the EUO’s action after April, you will see it’s time to be cautious of buying EUO.
