EUR/USD neutral: Proceed with cautionHello traders
My short was short lived and not too damaging.
This powerful EUR/USD bounce is not unusual but perhaps a little bit of a head scratcher.
No economic data of note.
Maybe some positioning before the ECB rate decision?
I don't know what time this morning Senator Mike Lee(R) of Utah decided it was a good idea to repost a clearly fake resignation letter from Chairman Jerome Powell on X, so perhaps that was a factor.
Once again, Scott Bessent calmed the markets by stating that he does not see any reason for Chair Powell to resign.
The technical picture is clear. The pair has broken and closed above a long term downtrend line/channel but is at the upper boundary of the short term channel.
I have noticed several ideas and minds looking for a decline to 1.1450. The intersection of the up and downtrend lines identifies that as a possible level to go long.
However, I take it one day at a time and I am generally hesitant to make long term predictions, so use your own best judgment.
The current economic environment is rife with uncertainty, so keep the risk small. To diversify,
I have been looking for potential growth stocks to dip my toes back into the stock market.
JOBY or ACHR anyone?
Best of luck
