The rising Euro/Usd is a concern ! When the Euro rises,Oil rises and Gold rises. The US consumer must pay higher energy prices and his purchasing power abroad melts like ice cream under the sun in the Saharan desert !! I made a post yesterday about a possibility of another higher leg in USO. A break of the Euro above $1.49 could trigger another rally in Oil prices and USO could reach $45 ,while the Euro could rally up to $1.53 (green scenario) ! On the other hand if the Euro fails to break above $1.49 this week,then the rally in USO will be in jeopardy, as well as the rally in stocks (blue scenario) ! The Euro holds the key here !!
EUO : Double Short Euro ; ULE : Double long Euro ; FXE : Long Euro