Wednesday, September 11, 2013

Revisiting the "Easy Bullish Bet" in Currencies

At the beginning of this month, I laid out the case for a bullish bet on the WisdomTree Dreyfus Emerging Currency Fund (CEW). Let's revisit that chart ...

(Updated chart)

Sure enough, the CEW did bounce off its lows, as I expected.  My target is the 61.8% retracement of its tumble, around $20.60.  It may run into some overhead resistance at its 50-day moving average here shortly; we'll see how that goes. In any case, so far, so good. Technical analysis worked in this case.

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