The EURUSD rally faded at around 1.1746 during the European session.
The EURUSD enjoyed another Trump-triggered rally Friday after he expressed his displeasure with the Fed’s monetary policy. The EURUSD soared about 70 pips after his comment last Friday.
The common currency continued to climb after the Monday open in Asia and reached as high as 1.1746 before it ran out of steam. From 1.1746, it then quickly reversed it course and dropped 60 pips.
The overall economic picture has not changed. This kind of verbal intervention won’t produce a long lasting effect on the big picture. We still have very strong economic data from the U.S., which keeps the U.S. dollar strong. We know the Fed will continue to raise interest rates this year. The ECB and the Bank of Japan are still very dovish regarding their monetary policies. They will keep the euro and the yen bulls at bay.
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