In truth, CurrencyShares Euro Trust has been faltering at the resistance of its 100-day intermediate-term trendline. If FXE stumbles at its 100-day yet again, it might be reasonable to assume that investors fear systemic risk for the financial system as well as ongoing economic hardship for the globe's largest economy. Developed world and emerging-markets stocks would retreat.
PowerShares Dollar Bullish (UUP) also depicts the likelihood of potential risk aversion. Not since the "sell-in-May" swoon have we witnessed a mad dash to own the greenback. If the current price of UUP hangs around its intermediate-term moving average instead of moving lower, investors may lose faith in the resolve of a "united" euro zone.
Keep in mind, an investor who wishes to
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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