- 6E futures rally 2.7% in three days, looking at what caused it.
- RSI pointing toward further bullish momentum indicates we ignore short trades for now.
- Monthly chart showing classic trend continuation pattern.
The Euro has rallied 2.7% in three days, a large amount for a currency. Reason being, the collapse of svb bank and the easing of US job numbers. This indicates it’s likely the FED will not raise interest rates in the next meeting. The Dollar collapsed alongside the equity markets as fear spread.
Technicals
The daily chart is bullish due to the fundamentals mentioned above. There is no trade that I can find, but it is clear that the trend is turning green once more, which could lead us to ignore all short signals and take only long signals.
The RSI has crossed the 50 line and is still some way from overbought. There is a chance we get some sideways movement for the next few days before another push higher.
The monthly chart shows a classic trend continuation pattern as last month’s candle was red, and this one is green, almost filling the entire of last month’s candle. This further solidifies the bull trade and the idea that short trades could be ignored for the foreseeable future.
