I think that the EURUSD has more room to move to the upside in this megaphone but the primary trend is down. I'm not trading it to the upside but I'm looking or anything over the 50% line as opportunities to open short positions
USD has been strong as the FED pumps rates up. The markets are on hopium thinking rates will go flat or down soon. That may have resulting in a bounce in currencies against the USD, but I that was only a knee jerk reaction. I think that once the markets realize the FED is committed to long term 5+% rates then the demand for USD will be high from foreign investors....
The markets think the Fed is being dovish. Its not that. It's that the Fed is not being hawkish. So what does a desperate market do? It pumps on the fact the Fed isn't hostile. This will just give Powell more cannon fodder to keep pumping rates. The next Fed meeting is expected to be .25 more. The 3rd Fed meeting this year was another .25 but sentiment changed...
