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Monday, 04 February 2008 |
Please refer to this article:
http://www.accuinvestor.com/Market-Articles/Eurodollar-Heading-For-a-Slump.html
Now that you read the above and you see that the Eurodollar is bearish, let me show you why the US Dollar will be bullish:
As you can see, the Eurodollar and the US Dollar have a negatively correlated, inverse relationship. Or in other words, when the Eurodollar is down, or going down, the Dollar Index is up or going up.
Here is some more confirmation of a bullish US Dollar Index. The Money Flow Index is positively diverging with the price trend. Nine out of ten times, this formation is 100% indication of a price reversal (from stagnant or declining to upward). 
Pay attention to these two derivatives. These pairs can serve as a good either a good hedge or a fast way to high earnings with a double bet. Click here for more information on Covariant and Inverse strategies.
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