Wednesday morning

With the Euro trying to break above 1.4450, lets take a look at the vulnerability of the dollar.

DXY index:

You would have to have some serious conviction to step in front of this chart on the long side.  Certain technical cliches come to mind, such as "there is no such thing as a triple bottom."  Take a look at a longer term chart below.  I can see the index easily gaping down to 72.70 lows (red line) we saw in May before it finds support.  The only mitigating factor is PPI this morning coming in higher than expected, an inflationary indicator which will provide support for the dollar here.  I am still sitting tight on playing commodities until I see a full fledged break out of the Euro - may be just around the corner.