EUR/USD short: Grow eyes in the back of your headHello traders
Well, what an exciting but yet predictable week with the tariff turmoil.
I have advocated several times in the past to keep an eye on the US 10Y yield but yesterday's price action definitely left me feeling like my head was spinning on my shoulders like Beetlejuice. Fun movie.
However, I was on the EUR/USD long side after the rejection lower at the weekly high. Dumb luck or insight, I don't know but I am grateful that my 10 pip trailing stop starting at 1.0988 propelled my trade higher until it was stopped out.
The US 10Y yield rocketed higher and the USD decoupled, crashing lower against the Euro.
And that folks, is probably why we once again have a new tariff scheme. Traders and (likely) Sovereign entities dumping US bonds seemed to be behind this illogical move. This event must have hit a nerve somewhere in the White House because without issuing more debt and finding buyers, the proposed tax cuts are dead in the water. More about that later in the week.
I have entered into a technical driven short EUR/USD position with a tight stop above 1.0998. This trade will only be successful if the current calm conditions prevail and core CPI MoM(March) comes in higher tomorrow. Jobless claims? Ask Musk and DOGE. The FOMC is not going to bail out this market if it gets choppy again, so keep an eye on your preferred newsfeed.
In conclusion, be hyper vigilant because the bond market might have had a successful US 10Y auction today but there is nothing "beautiful" about anything at the moment.
Do Beetlejuice with eyes in the back of your head.
Good luck
