With the markets moving against us, we have been watching the model on when it will be closing, the latest that we see on the charts are the following:
- Dollar has moved down to test te support at 94.55 again. Prompted by Trump tweets.
- EURUSD has moved to the resistance at 1.1719 and tested and pulled back.
- The uptrend in dxy is still unchallenged at 94.4 and the downtrend in EURUSD is no where near to be over as the ultimate line in sand comes at 1.1855.
US 1O Year rises
Conclusion: Trump tweet did generate some excitement but it is not something that will change trend. The bond markets yield on 2 y was hardly moved at 2.6% while the 10 year actually rose by 1.6% which suggests that the bond markets are moving contrary to Trump desire to pull dollar lower. Its not going to work for Trump. The FED is now more keen than ever to show its independence and increase rates and also result in higher dollar. The 1.1719 line for EURUSD is holding well and we may see late sell off in EURUSD today as a forerunner to next week US tariff list for EU.