Comparison between the US Dollar, The Euro and the SPY 08-28-10

The question that I wanted a partial answer to was whether there was any correlation between the Dollar, the Euro and the Markets.  I am using the SPY as a market indicator.  It appears from the attached charts that the SPY has been moving in step with the Euro and opposite to the US Dollar.  If that relationship remains then one should be able to get an indication as to where the US markets should go.   I believe that the charts are self-explanatory.  There is an analysis of the Euro, the US Dollar and the SPY following this.

The September Euro (EUU0) 08-28-10

The Euro closed the week at 1.2761 up on the week.  There is currently upside pressure being applied to the Euro on the daily chart.  For price to start a major move higher it would have to go through the entry price of 1.2969 and then the first price objective would be 1.3330.  Price found support at the first price objective for a move down.  For price to restart a move lower it would once again have to go through PO1 at 1.2602 and then the first price objective for the short cycle move down would be 1.2412.  The analysis of the US dollar follows this and as the Euro has a large percentage of the dollar index they should move in opposite directions and they do.