What I Am Watching Today: DAX, EUR/USD, AUD/USD and USD/JPY

EUR/USD trades near 1.1092, below the 50-day EMA at 1.1279 and the 1.1350 resistance level. Source: TradingView.

The euro is trying to find its floor. That being said, real rates in the United States continue to make the U.S. dollar attractive, and we have seen that play out in multiple markets. Right now, precious metals are getting hammered. A short-term rally at this point in time makes a bit of sense after the last couple of days, but I look at that as a selling opportunity. I’m looking to fade rallies as they occur.

I really don’t have any vague interest in buying the euro until we break above the 50-day EMA, which is all the way up to the 1.1278 level. The ECB is supposedly fighting inflation risk, but we’ll have to wait and see. It’s an increasingly hawkish Federal Reserve, and they are expected to raise rates in December. The ECB was a little less committed about it, so I think we continue to see sellers come in at the first signs of trouble.