Some nice buying the euro
EUR/USD isn't where I would have expected to see some of the most-aggressive USD selling after the surprisingly hawkish comments from Powell but that's how it's unfolding.
Whether that's due to month-end or genuine euro-buying interest is another story.
For now though, the euro has recovered to the 50% retracement of the drop. It will need to get above 1.1332 and the 61.8% retracement to convince me this isn't a bounce to consider selling.
In the bigger picture, there's some support at 1.1160 that the euro is trying to hold. However if omicron gets worse and the Fed does hold off on the taper, there's scope for 1.1500 on the upside.
