” Stocks drop on uncertainty after Europe’s weekend elections”….these are this mornings headlines from the USA Today website (see post here) Bloomberg’s headlines read…”S&P 500 Futures Fall as Europe’s Voters Reject Austerity” (see post here)
What happens to the U.S. Dollar the majority of the time we see these type of headlines? See below how the Dollar is reacting this morning and what it is facing-
CLICK ON CHART TO ENLARGE
In the big picture, should the world run into serious challenges (more than surprise election results out of Europe), odds remain high that investors will move towards the U.S. Dollar, viewing it as a “Safe Haven!”
Why is the US$ not moving much higher this morning with these type of headlines out of Europe? Maybe its nothing more than US$ traders are first having to face a falling resistance line, at the top of flag/pennant pattern at (1).