The EUR USD posted a closing price reversal bottom after positive comments from Greek officials encouraged weak shorts to lighten up their positions. After touching a new low for the year overnight, the EUR USD turned around as the lack of fresh selling pressure scared some of the weaker shorts out of the market.

The U.S. Dollar was able to mount a comeback after early session weakness. A lower than expected U.S. pending home sales report helped raise fears the Fed would once again leave interest rates at historically low levels and fueled increased demand for the Dollar as a safe-haven investment. Oversold conditions also contributed to today’s rally.

Investors continued to dump higher risk assets today triggering weekly closing price reversal tops in the December E-mini S&P 500 and the December E-mini NASDAQ. A follow-through break to the downside in both of these markets next week will confirm the reversal top and lead to the start of a 2 to 3 week break.

The U.S. Dollar posted a strong gain today and is now in a position to close higher for the week. A weekly closing price reversal could indicate the start of a 3 to 4 week rally. Investors are not too happy with the projected pace of the global economic recovery. Many cite yesterday’s action by the Fed as a sign that the recovery will be slow and labored.