Simple's Green Room

[pennies2007]

LOL! Very astute observation my friend...yes, it is a test. I will now reveal the full details of this pair. You might not be familiar with it but this pair is USD/DKK. And it's the daily chart.

It has 2 very important features...

#1. It is the polar opposite of EU...literally, you can take the EU chart, flip it upside down, and you get USD/DKK. They move in completely opposite directions. So, if USD/DKK moves up, EU moves down. So you just helped to confirm that EU is likely headed down since USD/DKK is likely to head up.

#2. This pair reflects the current state of the US dollar index almost perfectly. This last drop on USD/DKK took place as the risk pairs like EU, AU, GU, etc. took off north. So, if USD/DKK goes north, those same risk pairs are gonna drop.

This is just another way to confirm what I already see on the risk pair charts that I posted last night. But I really did want your unbiased opinion to make sure that I wasn't just being biased in my approach.

Well done...we agree with the technical evaluation. Here is the full chart with all of the details. While I don't necessarily expect the top to blow off just yet, I do also expect a return to the top end.

By the way, USD/DKK has an ADR of 500 to 600 pips a day. The big spike on EU drove this one down 2400 pips. It's about a 5:1 relationship with EU. If EU moves 20 pips, USD/DKK will move 100 pips or so in the opposite direction.

USD/DKK Daily Chart...