The US dollar has pulled back rather significantly during the trading session on Monday, as we have seen traders running from the US dollar in general after the Department of Justice announcement.
The US dollar has pulled back rather significantly during the trading session on Monday, which does make a certain amount of sense considering that the Department of Justice in the United States is now looking to investigate Jerome Powell. With that being the case, we could see a massive market movement if it really gets some type of traction.
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The reality is that it probably doesn't matter. Jerome Powell will be long gone out of the Federal Reserve, certainly won't be the Chairman, by the time any of that would come to fruition. So, with that being said, I think the US dollar negativity, which it does make sense that we would have had a knee-jerk reaction like this, probably is somewhat short-lived.
This pair is particularly interesting to me because it pays a positive swap to get long of, and I've been doing that time and time again over the last several months. I do plan on doing that again. I think there is a pretty significant floor near the 0.79 level, and the closer we get to that area, the more likely I am to start buying dollars.
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The Swiss National Bank continues to work against the idea of a strengthening Swiss Franc. I think that's the big story here. If we do break out to the upside, I'm paying special attention to the 200-day EMA because breaking that means we broke out of the consolidation area and it is now in hindsight what would be accumulation, which is pretty much what I think it is right now anyway.
I am long of this pair. I am long of this pair multiple times, and I will probably add to this position somewhere in this neighborhood. I have no interest in shorting; the Swiss National Bank has made it clear they do not appreciate the strengthening currency.
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