Yesterday’s pullback came with a disappointing LTRO, but aside from that, and in the bigger picture, Fed Chairman Bernanke’s testimony caused traders to unwind their expectations for more QE. This caused dollar strength pushed the EUR/USD lower. If the U.S. dollar was the driver of psychology in Wednesday’s session, the pullback was simply a correction. Consider that the uptrend in the Dow Jones in still strong and intact and this will continue to put pressure on the U.S. Dollar Index as the risk ON play is still alive and kicking. The dollar has not sold off as equities look stronger pre-market. The uptrend has ... (full story)