The Euro's trend, revealed by trends of price, leverage, and time, are defined in the The Matrix for subscribers.
The Euro rallied today after John Williams said “only so much stimulus at your disposal, it pays to act quickly to lower rates at the first sign of economic distress.” In other words, the Fed stands ready to throw the kitchen sink at the first sign of slowing economic growth. I assume the logic goes at the last Fed meeting, look at Europe, zero and negative interest rates have worked so well at restoring economic growth we better do it here too. Unfortunately, the real conversation must have been more like, Europe is screwed and central banks can do only so much, so we'll act as if something can be done so people don't panic.
If you think the Euro rally has legs, think again. Bear in mind, the Euro's DI tends to move against price as smart money fades the 'idiots'. The rally in the Euro will likely be sold by the invisible hand, pushing DI below -60%. This creates a blocking dome. Subscribers have seen blocking domes in corn, soybeans, platinum and numerous other markets this year. The invisible hand is smart and good at timing. If it's fading the Euro rally, you should be listening.
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