Now what? If the EURUSD holds the 1.33 level then an relief rally back to to 1.35 is reasonable. Therefore the DXY would pullback. Otherwise failing to hold the 1.33 level would suggest a move down to 1.32 then perhaps 1.30 even. However with so many cross-currents in currency land right now you might as well throw away the charts. After all, Goldman recommend their clients get long the EURUSD. I guess one day people will catch on to how they operate with these calls. They might be telling the truth but they are on a much different time horizon than they lead you to believe. Basically when they need to put on a large position they will lead people to slaughter each and every time. In this case the prop desk was probably wanting to short the snot out of the Euro and needed some buyers to sell into. It's ok that the research department puts out a bullish call, after all their fine print allows them to get away with such conflicts of interest.
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