The market is certainly a cruel teacher, and one of the most important lessons in trading and risk management is being able to admit you are wrong. The US dollar is proving me wrong today and has convincingly broken the 79 support level. As you can see in the below chart, the next major support level for the US Dollar Index is the 200-day moving average, which is down at 77. This has been driven by the strength in the euro this morning, which finally pushed through the 1.32 resistance level and quickly ran stops all the way above 1.3250. The large short position in the euro probably needs to be unwound here before it ... (full story)