Technical analysis: Euro rebound has some legs
Reversal yesterday was tentative but today's gains confirm it
More good economic data, more problems.
That's the story with the US dollar over the past two days. The numbers have been great and the chance of a Fed hike is rising but the US dollar is falling anyway. I have a post coming up talking about why but for now, let's look at what the charts are saying.
Yesterday's turnaround in EUR/USD looked like it could be a potential reversal but needed confirmation. Today we've gotten it as the pair rises another 70 pips. That's more than 140 pips from yesterday's post-CPI low and it engulfs the Mon/Tues losses.
The bounce was also staged from near the 61.8% retracement of this year's rally, which is another reason for optimism.
If the US dollar isn't going to rally on a hawkish Fed and great economic data, why bet on it at all?