The euro’s decline has temporarily stalled near 1.2211, but whether the level could hold, it is still yet to be seen.
The U.S. stock market and the Forex market remain volatile today. Dow Jones was down 400+ points, the Treasury yields were near multi-year high, and the euro was down near 400 pips from the recent high of 1.2520.
The euro succumbed to the selling pressure after the short-term support near 1.2320 was broken. It fell to a fresh 3-week low of 1.2211 before a kneejerk rebound to 1.23. The Philly Fed Harker said that he expected just two rate hikes in 2018; however, he would support another rate hike depending on the inflation and financial conditions. The rumors in the market were there might be 4 rate hikes in 2018. His comments provided the euro with some relief from the selling pressure; however, the effect was limited.
The strategy can be found here.
The latest result can be found here.