- The Euro rallied early on Monday as word got out that the Department of Justice is trying to look into Jerome Powell, and this has people a little bit concerned about the United States.
- That being said, this is more or less going to end up being political theater, and I think the markets are already starting to look through that.
The rally did send the Euro above the 50-day EMA, but let's be honest here, there is still a lot of work to do to get the massive trend started until we find ourselves above the 1.1850 level. I think you are still in a scenario where you see a lot of trouble just above, and if that's going to be the case, then I suspect you continue to see more of a fade, the rally type of situation.
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Ultimately, I think this is a market that, if we do in fact get an opportunity to short the Euro close to the 1.18 level on signs of exhaustion, you have to take that trade. Again, if we break above the 1.1850 level, then we could send this market much higher. I think at that point you're probably looking at the Euro trying to get to the 1.20 level.
To the downside, I see the 200-day EMA as interesting, looking very much like it could be support at the crucial 1.15 level, which is supported all the way down to the 1.14 level anyway. As a result, I think we're just going to stay in this range.
Despite the noise at the beginning of the session, I don't really think anything has changed here, and we will continue to see this as a choppy and sideways range-bound market.
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