US Dollar, Euro: Who Needs Intervention When You Have ECB President Trichet?

Indeed, versus the Euro, the US dollar broke above the 200 SMA – an average that has served as strong support and resistance in the past – while the US dollar index surged above a rising trendine connecting the March, May, and June highs. Furthermore, as Quantitative Analyst David Rodriguez mentioned yesterday, forex positioning shows that traders are still selling the greenback across the majors. As a contrarian indicator, this points toward further US dollar gains. Just a few weeks ago, the currency was trading at record lows and speculation was mounting over what the possibility of physical or verbal intervention by the US.