Euro Gets Crushed

The Euro has been completely broken during the trading session on Thursday as the markets have seen a massive amount of US dollar buying across-the-board. As the Federal Reserve looks very likely to continue hiking rates, it is very unlikely that the other currencies are going to do well. Yes, we will get the occasional bounce higher, but at the end of the day, we are very much in a downtrend. At this point, I think that the market is more than likely going to break down towards the 1.10 level, although not necessarily in a straight line.

EUR/USD Video 28.01.22

Any rally at this point in time I look at with significant suspicion, as we have been in a downtrend for some time, and it does make a certain amount of sense that there will be people willing to take advantage of what has been such a big deal over the last several months. The 1.10 level of course will be a major round figure that a lot of people will be paying attention to, and I do think that we get there over the next couple of weeks.

Quite frankly, it looks as if something is breaking in the financial markets, and therefore it does make a certain amount of sense that the US dollar continues to strengthen in general as people run towards safety. You can see this in the 10 year yield, and of course the fact that the greenback has been strong against almost everything. At this point, I do not have a scenario where I am looking to buy this market, because quite frankly the downward pressure is far too strong.

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