EUR/USD consolidates and prepares for a breakout
The EUR/USD has spent quite a bit of time consolidating into a triangular sideways pattern. Look for the pattern to break to one side or the other in the near term. The break should be quite substantial once it finally breaks outside of the pattern

With Trichet calling the Euro exchange rate "unfavorable" and "brutal", you know where his vote lies. He wants it to go downward.
On the other hand, Paulson is in Africa today with the top 20 industrialized nations. The topics: currencies, oil and inflation
You can bet that the dollar will be at the top of the discussion. For it's in everyone's best interest to see the dollar recover. Some countries exports are getting hurt with the dollar slide. Others are getting hurt due to "un-due" inflation hitting their economy all due to the dollar's fall.
Then of course, here in America, the "fall of the dollar" reduces our purchasing power. So these central banks want the dollar to go up.
So the question is, "Do the central banks get their wishes or does the market continue to rule and push against them?
Sean Hyman

If the economy is doing so good, why are the transports making a 52 week low?

If the economy is doing so good, why are the transports making a 52 week low?
The stock market dove yesterday and closed below 13,000. More importantly the Dow transports made a 52 week low yesterday. So for those who believe the economy is in such great shape...why are the Dow transports making a new 52 week low?

I believe it's because the big mutual funds/hedge funds don't believe that junk and that's why they are voting by selling stocks. When economies are fine, transports aren't making new lows.

Now if the Dow Jones Industrials break lower also, it's not going to be pretty for stocks. If stocks don't do well and recover...then the carry trade won't either. Then the JPY will be the best protection for a falling stock portfolio