- The Euro has been all over the place during the trading session on Wednesday as word got out, basically market manipulation that Trump was getting ready to fire Jerome Powell, but that has since been kind of walked back a little bit.
- And as the New York Times sent these erroneous headlines into the markets, the US dollar got absolutely crushed as everybody started running from America, thinking that the Federal Reserve was no longer independent. About 20 minutes later, he clarified things.
- He wants to fire Jerome Powell, but he doesn't have an easy path to do that.
So, it looks as if it was a lot of algorithmic trading behaving as algorithmic trading does, just freaking out first, sorting things out later. And now we find ourselves near the 1.16 level again, an area that I think will continue to be important going forward. After all, this is a market that had previously seen as a major resistance barrier, and now I think it should have a certain amount of market memory attached to it as support. Support, of course, comes into the market based on not only that, but the 50 day EMA, which is closer to the 1.15 level, an area that I think will end up being very important.
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If we were to break down below there then maybe you have a different argument when it comes to what's going to happen with the euro but really at this point, I don't think we have a situation where it's going to be an easy breakdown but if we broke down below there, we would not only see the euro fall against the dollar but probably most other currencies so keep that in mind.
I like buying bounce so far, but this was overdone during the session.
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