Chris explains: I see an extremely high correlation between the Euro ETF (FXE) and the Brazil ETF (EWZ) over the past four years. Geography-wise they may be far apart, yet movement-wise, the Euro appears to be in the driver's seat, with Brazil cuddled close by!
The Euro is up against a Fibonacci resistance level, and yet from a TA perspective, the situation of EWZ is really interesting. EWZ is facing falling resistance that has held for the past few years and has created a sizeable rising wedge up against this falling channel.
The "SUPER POWER PLAY' all starts right here and now. Harvest at resistance in the Euro and EWZ. But what will really be fun, if a breakout takes place at (1) in the chart, do what Forest Gump did and "run with it!"
