US Markets - Feb. 4, 2010

US dollar has finally breached the the 79.50 level. If the dollar can close at 79.50 or above for the week, it will sound the retreat for the markets...confirming a break through 10000 for the DJIA is inevitable. EUR/USD has performed remarkably...currently just north of my target of the 137.50 area...setting up for a potential retracement within the larger downtrend. Normally, I would say that it would be unlikely for the dollar to make any significant gains through Friday, however, with the unemployment report coming up...anything is possible. Will have to wait and see. In any event...if the Euro does start to retrace...it will provide for an excellent opportunity to go long the dollar in anticipation of the next leg down. So far 2010, has performed as expected...with spectacular gains for the dollar. All scenarios remain intact. Good luck and Good Trading. -Dio.